Greetings, fellow investors! Today, we’re diving deep into the latest quarterly report for the period ended 31 March 2025 from one of Malaysia’s prominent property groups. This report offers a fascinating glimpse into the company’s strategic shifts and operational performance, painting a picture of a group navigating a dynamic market environment.
While the quarter saw a dip in overall revenue, the headline act was a remarkable turnaround in net profit, moving from a loss in the previous corresponding quarter to a positive contribution. This shift, alongside strategic asset monetisation efforts and a confident outlook on the Malaysian property market, certainly warrants a closer look.
Let’s unpack the numbers and strategies that shaped this quarter’s performance and what they might mean for the future.
Unpacking the Latest Financials: A Mixed Bag of Performance
The first quarter of 2025 presented a nuanced financial landscape for the Group. While overall revenue experienced a decline, the underlying profitability saw a significant improvement, largely driven by strategic financial management.
Overall Financial Performance
Q1 2025
Revenue: RM260.4 million
Profit Before Tax (PBT): RM5.3 million
Net Profit Attributable to Owners: RM1.317 million
Basic Earnings Per Share (EPS): 0.05 sen
Q1 2024
Revenue: RM291.3 million
Profit Before Tax (PBT): RM22.3 million
Net Loss Attributable to Owners: (RM9.081 million)
Basic Loss Per Share (EPS): (0.40) sen
Compared to the same quarter last year, the Group’s revenue decreased by RM30.9 million, or 10.6%. This decline was primarily attributed to the completion of divestments of several investment properties, which consequently led to a reduction in recurring income. Furthermore, the Group recognized an unrealised loss on quoted shares in the current quarter, contrasting with an unrealised gain in the corresponding quarter of the previous year.
Despite the revenue dip, the Group managed to report a Profit Before Tax (PBT) of RM5.3 million, though lower than the RM22.3 million recorded in the same quarter last year. However, a significant positive development was the turnaround in Net Profit Attributable to Owners, which moved from a loss of RM9.081 million in Q1 2024 to a profit of RM1.317 million in Q1 2025. This remarkable shift also translated into a positive Basic Earnings Per Share of 0.05 sen, compared to a loss of 0.40 sen previously. This turnaround was notably supported by a decline in finance costs, aligning with the Group’s strategic initiatives to reduce overall debt levels through asset monetisation.
Segmental Performance: A Closer Look
Understanding the performance of each business segment provides deeper insights into the Group’s operational dynamics:
| Business Segment | Q1 2025 Revenue (RM’000) | Q1 2025 PBT (RM’000) | Q1 2024 Revenue (RM’000) | Q1 2024 PBT (RM’000) |
|---|---|---|---|---|
| Property Development & Property Management | 239,261 | 35,316 | 234,595 | 42,810 |
| Property Investment, Recreation & Resort | 19,440 | 3,984 | 50,100 | (2,318) |
| Investment Holding & Others | 1,661 | (33,978) | 6,580 | (18,236) |
| Total | 260,362 | 5,322 | 291,275 | 22,256 |
The Property Development & Property Management segment saw a slight increase in revenue but a decrease in PBT. This suggests that while sales were maintained, operational costs or specific project margins might have faced pressure.
The Property Investment, Recreation & Resort segment experienced a significant drop in revenue, a direct consequence of the divestment of investment properties. However, it’s positive to note that this segment turned a profit before tax of RM3.984 million, compared to a loss of RM2.318 million in the same quarter last year. This indicates improved efficiency or reduced losses from the remaining portfolio.
The Investment Holding & Others segment also saw a substantial reduction in revenue and a worsening of its loss before tax. This segment likely absorbed the unrealised loss on quoted shares mentioned in the report, contributing significantly to the overall PBT decline.
Financial Health & Strategic Moves
The Group’s balance sheet reflects ongoing efforts to optimise its financial structure:
Total borrowings saw a slight reduction from RM2,310.8 million as at 31 December 2024 to RM2,233.1 million as at 31 March 2025. This aligns with the strategy to reduce debt exposure through asset monetisation. Notably, secured short-term borrowings decreased, while secured long-term borrowings saw an increase, suggesting a re-profiling of debt.
Contingent liabilities decreased by RM71.1 million due to a reduction in corporate guarantees issued by the Company for its subsidiaries, indicating a de-risking of certain exposures.
Capital commitments also saw a reduction from RM22.111 million at the end of 2024 to RM14.898 million by 31 March 2025, reflecting a more cautious or focused approach to capital expenditure.
The Group continued its share repurchase program, buying back 21.06 million ordinary shares at an average price of RM1.15 per share. This move, increasing treasury shares to over 68 million, reflects confidence in the company’s valuation and a commitment to shareholder value.
Navigating the Future: Risks and Opportunities
While the latest report highlights a strategic repositioning, it’s crucial to consider both the opportunities ahead and the potential challenges the Group might face.
A Positive Outlook for the Malaysian Property Market
The Group remains optimistic about the Malaysian property market, and for good reasons. Analysts are forecasting strong capital inflows and renewed buying interest, especially as global interest rates are anticipated to decline. The consistent Overnight Policy Rate (OPR) at 3% by Bank
