KTI Landmark’s Q1 2025: Strong Year-on-Year Growth Amidst Quarterly Shifts
Greetings, fellow retail investors! KTI Landmark Berhad, a familiar name in Malaysia’s property development and construction scene, has just unveiled its unaudited financial report for the first quarter ended 31 March 2025. This report offers a fresh look into the company’s performance, revealing impressive year-on-year growth that signals robust underlying activity, even as it navigates some quarter-on-quarter adjustments. Let’s dive into the numbers and understand what’s driving KTI Landmark’s journey.
Key Takeaway: KTI Landmark delivered a significant increase in revenue and profit compared to the same period last year, demonstrating strong operational momentum. An interim dividend declaration further sweetens the deal for shareholders.
Core Financial Highlights: A Year-on-Year Leap
Looking at the first quarter of 2025 against the same period in 2024, KTI Landmark has achieved remarkable growth across its key financial metrics. This performance underscores the company’s expansion in its ongoing projects and construction activities.
Q1 2025 Performance
Revenue: RM55.95 million
Profit Before Tax (PBT): RM2.54 million
Profit After Tax (PAT): RM1.88 million
Earnings Per Share (EPS): 0.23 sen
Q1 2024 Performance
Revenue: RM27.08 million
Profit Before Tax (PBT): RM0.61 million
Profit After Tax (PAT): RM0.34 million
Earnings Per Share (EPS): 0.04 sen
The numbers speak volumes: Revenue more than doubled, soaring by approximately 106.6% from RM27.08 million to RM55.95 million. This substantial increase flowed directly to the bottom line, with Profit Before Tax (PBT) skyrocketing by about 316% and Profit After Tax (PAT) leaping by an impressive 453%. Consequently, Earnings Per Share (EPS) saw a significant jump from 0.04 sen to 0.23 sen, reflecting enhanced profitability for shareholders.
Diving Deeper: Segment Performance
The robust year-on-year performance was largely driven by KTI Landmark’s ongoing property development projects, including Residensi Seri Akasia Block E & F, Plaza Lemawang 2, Kayana Heights, Taman Seraya, and The Logg project. Additionally, external construction projects in Lok Kawi and Labuan significantly contributed to the revenue growth.
Let’s look at the breakdown by segment:
| Segment | Q1 2025 Revenue (RM’000) | Q1 2024 Revenue (RM’000) | Change (%) |
|---|---|---|---|
| Property Development | 33,317 | 26,687 | +24.8% |
| Construction | 22,637 | 392 | +5697.7% |
| Others | – | – | N/A |
| Total External Revenue | 55,954 | 27,079 | +106.6% |
The construction segment’s revenue growth is particularly striking, demonstrating the successful execution of external projects. While property development also saw a healthy increase, the construction arm was a powerhouse of growth.
Quarter-on-Quarter Snapshot: A More Nuanced View
While the year-on-year figures are impressive, comparing the current quarter (Q1 2025) with the immediate preceding quarter (Q4 2024) reveals a different picture. The Group’s revenue decreased by 15% and PBT saw a sharper decline of 70%.
Q1 2025
Revenue: RM55.95 million
Property Development Revenue: RM33.32 million
Construction Revenue: RM22.64 million
PBT: RM2.54 million
Q4 2024
Revenue: RM66.02 million
Property Development Revenue: RM45.87 million
Construction Revenue: RM20.13 million
PBT: RM8.36 million
This quarter-on-quarter dip in revenue was primarily due to the absence of new launches in Q1 2025 and the completion of Residensi Seri Akasia Blocks C & D, which had contributed significantly in the previous quarter. However, increased construction activities helped mitigate some of this decline. The sharp drop in PBT was also influenced by higher administrative costs, including increased employee costs and bonus payments.
Financial Health and Cash Flow
As of 31 March 2025, KTI Landmark’s total assets stood at RM728.23 million, up from RM677.62 million at the end of 2024. This growth was accompanied by an increase in total liabilities to RM552.58 million from RM501.45 million, primarily due to higher borrowings. The Net Asset Per Share remained stable at RM0.22.
In terms of cash flow, the Group saw a net cash outflow from operating activities of RM49.33 million and from investing activities of RM27.03 million. These outflows were significantly offset by a strong net cash inflow from financing activities, amounting to RM64.24 million, largely driven by drawdowns of term loans and trade financing facilities. As a result, cash and cash equivalents at the end of the period stood at RM21.47 million, a healthy increase from RM6.04 million in the same period last year.
Strategic Outlook and Potential Hurdles
KTI Landmark has outlined clear strategic plans to bolster its position in Sabah’s property market. These include:
- Landbank Expansion: Acquiring more land for future property development projects in Sabah.
- Market Presence: Further strengthening its foothold as a leading property developer in the region.
- IBS Production Capability: Expanding its Industrialised Building System (IBS) production with a new line for hollow core slabs, complementing existing IBS components.
- Operational Efficiency: Upgrading software and systems to enhance overall efficiency.
The Board of Directors remains optimistic about the Group’s future prospects, assuming no unforeseen circumstances. These strategic initiatives are aimed at ensuring sustainable growth and operational excellence.
Summary and Investment Considerations
KTI Landmark’s Q1 2025 report paints a picture of a company with strong year-on-year growth, particularly in its construction segment, which has more than compensated for slower property development activities compared to the immediate preceding quarter. The company’s strategic plans for landbank expansion, IBS production, and operational efficiency improvements highlight a forward-looking approach aimed at long-term growth. The declaration of an interim dividend is also a positive signal to shareholders, demonstrating the company’s commitment to returning value.
However, potential investors should also be aware of the ongoing legal challenges, which could impact the company’s financial position, depending on the outcomes. It’s crucial to consider these factors when evaluating the company’s overall risk profile.
Key risk points to monitor:
- LHDN Tax Dispute: The ongoing litigation with the Inland Revenue Board (LHDN) regarding tax deductibility of government grant-related expenses. While Landmark Property’s solicitors are optimistic about their appeal to the Federal Court, a significant contingent liability of RM14.67 million remains if the appeal is unsuccessful.
- GCA Arbitration Case: The dispute with GCA over professional services. Although RM4.29 million has already been paid as per a court order, Landmark Property is appealing to the Court of Appeal, with the potential to recover the amount if successful.
Final Thoughts and What’s Next?
KTI Landmark has certainly shown its resilience and growth potential in Q1 2025, especially when viewed on a year-on-year basis. The strategic focus on expanding its landbank and enhancing its construction capabilities through IBS is a smart move in a competitive market. While the quarter-on-quarter performance suggests a natural ebb and flow in project cycles and increased operational investments, the long-term vision appears solid.
What are your thoughts on KTI Landmark’s latest performance? Do you think the company can maintain this growth momentum in the next few years, especially with its strategic initiatives? Share your views in the comments below!
For more insights into Malaysian companies and market trends, stay tuned to our blog for future updates!
