Navigating the Headwinds: A Look at Pegasus Heights Berhad’s Q1 2025 Performance
Greetings, fellow investors and market enthusiasts! Today, we’re diving into the unaudited condensed consolidated financial statements of PEGASUS HEIGHTS BERHAD for the first quarter ended 31 March 2025. This report offers a crucial snapshot of the company’s journey through a dynamic market, revealing both areas of resilience and segments facing significant challenges.
While the company reported a decrease in overall revenue and an increased loss for the period compared to the previous year, there are underlying shifts and strategic adjustments worth noting. Let’s break down the key figures and what they mean for this Malaysian entity.
Core Financial Highlights: A Mixed Bag
Pegasus Heights Berhad’s Q1 2025 performance presents a complex picture. While the top-line revenue saw a dip, the company managed to improve its gross profit, indicating some positive internal shifts in cost management or revenue mix. However, the overall loss widened, primarily driven by higher administrative expenses and finance costs, coupled with a significant drop in certain business segments.
Overall Performance Comparison (Q1 2025 vs. Q1 2024)
Revenue
RM2,760,000
Previous Year (Q1 2024)
RM3,117,000
The Group’s revenue for the current quarter stood at RM2.76 million, marking an 11.5% decrease from RM3.12 million in the corresponding quarter last year. This decline was primarily attributed to lower contributions from the Food and Beverage (F&B), Financial Services, and Project Management Consultancy (PMC) segments.
Gross Profit
RM1,331,000
Previous Year (Q1 2024)
RM1,293,000
Interestingly, despite the revenue decrease, the company’s gross profit actually saw a slight increase to RM1.33 million from RM1.29 million. This indicates a more significant reduction in the cost of sales (from RM1.82 million to RM1.43 million), suggesting improved cost efficiency or a shift towards higher-margin activities within the remaining revenue streams.
Loss Before Taxation (LBT)
RM(1,095,000)
Previous Year (Q1 2024)
RM(956,000)
The Group recorded a higher loss before taxation of RM1.095 million, compared to RM0.956 million in the same period last year. This 14.5% increase in loss is a direct consequence of the lower revenue contributions and increased administrative and other expenses, alongside higher finance costs.
Basic Earnings Per Share (EPS)
(0.01) sen
Previous Year (Q1 2024)
(0.01) sen
Basic earnings per share remained at (0.01) sen, reflecting the continued loss-making position of the company.
Diving Deeper: Segmental Performance
Understanding the performance of each business unit is crucial to grasp the overall financial health:
| Segment | Revenue Q1 2025 (RM’000) | Revenue Q1 2024 (RM’000) | Change (%) | Segment Result Q1 2025 (RM’000) | Segment Result Q1 2024 (RM’000) |
|---|---|---|---|---|---|
| Property Management | 2,091 | 1,873 | +11.6% | 70 | (78) |
| Financial Services | 381 | 399 | -4.5% | (98) | (137) |
| Project Management Consultancy (PMC) | 0 | 570 | -100% | (2) | 181 |
| Food and Beverage (F&B) | 356 | 425 | -16.3% | (187) | (146) |
| Investment Holding and Others | 0 | 0 | N/A | (821) | (740) |
- Property Management: This segment was a shining light, with revenue increasing by 11.6% and turning profitable with a segment result of RM70,000, a significant improvement from a loss of RM78,000 in the prior year. This indicates a positive momentum in their core property operations.
- Project Management Consultancy (PMC): A major drag on performance, this segment recorded zero revenue in Q1 2025, down from RM570,000 last year, and consequently swung to a loss. The report notes “no activity in the PMC segment,” highlighting a significant operational gap.
- Food and Beverage (F&B): Revenue declined by 16.3%, and losses widened. This is attributed to a reduction in the number of operating restaurant outlets, with only three remaining.
- Financial Services: This segment saw a slight revenue decrease but managed to reduce its segment loss, indicating some operational improvements despite lower top-line figures.
- Investment Holding and Others: This segment continues to be the largest contributor to the Group’s overall loss, with its loss widening further to RM821,000.
Financial Health and Cash Flow
Looking at the balance sheet, total assets slightly decreased to RM129.96 million from RM130.49 million at the end of 2024. Total equity also saw a minor reduction to RM119.76 million from RM120.86 million, primarily due to the loss incurred during the period. Total liabilities, however, increased to RM10.19 million from RM9.63 million.
A notable positive development is the company’s cash flow from operations. Pegasus Heights generated RM1.05 million in net cash from operating activities in Q1 2025, a significant turnaround from consuming RM1.52 million in the same period last year. This improvement in operational cash generation is a positive sign for the company’s liquidity, despite the overall loss.
Risks and Prospects: Navigating the Future
The report provides insights into the company’s forward-looking strategies and challenges:
- Property Management Strength: The mall’s occupancy rate improved to 82.56% as of 31 March 2025, an increase of 1.8%. This positive trend is expected to continue with two new F&B outlets slated to open in Q2 2025, which should enhance tenant mix and yield. This reinforces the Property Management segment as a key growth driver.
- F&B Segment Caution: The company remains cautious on the F&B segment due to the reduced number of operating outlets. While new F&B outlets are opening in the mall, it remains to be seen if these are company-owned or third-party tenants. The report suggests the former is declining.
- Financial Services Stability: The outlook for the financial services segment remains positive, with collections staying current due to strict credit policy enforcement and rigorous customer screening. This indicates a well-managed operation in this area.
- Seeking New Opportunities: The Group continues to actively seek new opportunities, which is a crucial strategy for diversification and growth, especially given the challenges in some of its existing segments.
Summary and
Pegasus Heights Berhad’s Q1 2025 report paints a picture of a company in transition. While overall revenue declined and losses widened, the strong performance of the Property Management segment and a significant positive shift in cash flow from operations offer glimmers of hope. The company’s ability to increase gross profit despite lower revenue also suggests an underlying improvement in operational efficiency.
However, the complete halt in PMC segment activity and the continued struggles in F&B and Investment Holding segments remain significant concerns. The company’s strategic focus on increasing mall occupancy and seeking new opportunities is vital for future growth.
Key points to consider moving forward:
- The overall revenue decline and increased loss before taxation, primarily due to reduced contributions from PMC and F&B segments.
- The strong performance and positive turnaround of the Property Management segment, driven by increased mall occupancy.
- The significant positive shift in cash flow from operating activities, indicating improved liquidity.
- The cautious outlook for the F&B segment due to a reduction in operating outlets.
- The persistent losses from the Investment Holding and Other segments, which continue to weigh on overall profitability.
- The company’s proactive search for new business opportunities to diversify and enhance future revenue streams.
As Malaysian retail investors, it’s crucial to observe if the positive momentum in property management can offset the declines in other segments and if the company’s search for new opportunities will bear fruit. The improved operational cash flow is a positive sign, but the path to sustainable profitability appears to be a challenging one.
What are your thoughts on Pegasus Heights Berhad’s latest results? Do you believe the growth in property management can sustain the company’s journey, or do the challenges in other segments present too great a hurdle? Share your insights in the comments below!
