Chemlite Innovation Berhad’s Inaugural Post-Listing Quarter: A First Look at Performance and Future Trajectory
Greetings, fellow investors! Today, we’re diving into the much-anticipated first quarterly report of Chemlite Innovation Berhad for the period ended 31 March 2025. This report offers our initial glimpse into the company’s performance since its successful listing on the ACE Market of Bursa Malaysia on March 26, 2025. As a newly public entity, this debut financial statement is crucial, providing insights into its operational health and strategic direction right out of the gate.
While this is Chemlite’s first interim financial report as a public company, meaning we don’t have direct comparative figures for the same period last year, the report still lays out a foundational understanding of its financial standing and operational efficiency. Let’s unpack the key highlights.
Core Data Highlights: A Solid Start Despite Listing Costs
For its inaugural quarter, Chemlite Innovation Berhad reported a revenue of RM9.42 million. The company achieved a Profit Before Tax (PBT) of RM0.70 million and a Profit After Tax (PAT) of RM0.55 million. It’s important to note that these figures include approximately RM1.00 million in one-off listing expenses related to the IPO. When we adjust for these non-recurring costs, the “Normalised PAT” paints a more robust picture of approximately RM1.29 million, demonstrating the underlying profitability of the business.
Individual Quarter Ended 31 March 2025
Revenue: RM9,420,000
Gross Profit: RM2,975,000
Profit Before Tax (PBT): RM699,000
Profit After Tax (PAT): RM552,000
Basic & Diluted EPS: 0.11 sen
Normalised PAT (excluding IPO expenses): RM1,286,000
Individual Quarter Ended 31 March 2024
Revenue: N/A
Gross Profit: N/A
Profit Before Tax (PBT): N/A
Profit After Tax (PAT): N/A
Basic & Diluted EPS: N/A
Normalised PAT (excluding IPO expenses): N/A
Note: This is the first interim financial report for Chemlite Innovation Berhad following its listing on Bursa Malaysia. As such, there are no comparative figures for the preceding corresponding quarter.
Key Margins for Q1 FY2025:
- Gross Profit Margin: 31.58%
- Normalised PBT Margin: 18.07%
- Normalised PAT Margin: 13.65%
The Group’s effective tax rate was lower than the statutory rate, primarily due to the utilisation of reinvestment allowance from capital expenditure.
Business Unit Performance: Metal Plating Leads the Way
A closer look at the revenue breakdown reveals that Chemlite’s metal plating segment was the primary revenue driver, contributing a significant 87.06% to the total revenue for the quarter. The non-metal plating segment accounted for the remainder. Geographically, Malaysia remains the core market, contributing the vast majority of revenue, followed by the Philippines and other regions.
| Business Segment | Revenue (RM’000) | Contribution (%) |
|---|---|---|
| Metal Plating | 8,201 | 87.06% |
| Non-Metal Plating | 1,219 | 12.94% |
| Total | 9,420 | 100% |
| Geographical Location | Revenue (RM’000) | Contribution (%) |
|---|---|---|
| Malaysia | 8,546 | 90.72% |
| Philippines | 866 | 9.19% |
| Others | 8 | 0.08% |
| Total | 9,420 | 100% |
The report also highlighted that production costs increased substantially due to additional ad-hoc research and development (R&D) work undertaken for customers. This suggests a commitment to meeting specific client needs, which could enhance long-term customer relationships and product offerings.
Financial Status: Bolstered by IPO Proceeds
The company’s financial position saw a significant uplift, largely due to the proceeds from its Initial Public Offering (IPO). Total assets surged to RM68.52 million as of 31 March 2025, compared to RM40.33 million at the end of 2024. This increase is primarily reflected in a substantial rise in cash and bank balances, which jumped from RM1.27 million to RM22.93 million.
Share capital also saw a substantial increase from RM10.56 million to RM38.56 million, reflecting the issuance of new shares during the IPO. Consequently, total equity attributable to owners of the Company rose significantly from RM19.43 million to RM47.98 million. This boosted the net assets per share from RM0.04 to RM0.08, a positive sign of shareholder value enhancement post-listing.
From a cash flow perspective, while operating activities saw a net cash outflow of RM5.54 million (partially due to a RM7.80 million payment for an industrial land acquisition, which is currently classified under receivables until vacant possession is obtained), financing activities generated a strong net inflow of RM27.44 million, mainly from the IPO share issuance proceeds.
Utilisation of IPO Proceeds
Chemlite raised gross proceeds of RM30.00 million from its IPO. As of 31 March 2025, RM10.80 million of these proceeds have been utilised. The primary allocations thus far include RM7.80 million for the expansion of the Group’s facilities and RM3.00 million for estimated listing expenses. The remaining RM19.20 million is earmarked for various strategic initiatives, including setting up cleanrooms, capital expenditure on machinery, establishing an R&D department, repayment of bank borrowings, and working capital, all planned for utilisation within the next 6 to 24 months.
Risks and Prospects: Navigating a Complex Global Landscape
Chemlite operates within the Electrical & Electronics (E&E) and semiconductor industries, which face a mix of opportunities and challenges. The management acknowledges the “cautiously optimistic” outlook for Malaysia’s E&E sector, buoyed by the ongoing global technology upcycle. The World Semiconductor Trade Statistics (WSTS) projects double-digit growth in global semiconductor sales for 2025, which is a positive indicator for Chemlite.
However, the report also highlights potential headwinds. Heightened geopolitical tensions, trade and investment restrictions, supply chain realignments, and shifting geopolitical alliances could impact future investment flows and demand visibility. The management is also aware of potential signs of a slowdown in orders driven by a more measured pace among global semiconductor players, prolonged lead times, tightening monetary conditions, and geopolitical fragmentation.
Despite these challenges, Chemlite’s management remains optimistic about its future growth. They anticipate that the strategic utilisation of IPO proceeds will significantly contribute to the Group’s expansion and growth in the medium to long term. This includes plans for facility expansion, setting up cleanrooms, and investing in new machinery, all aimed at strengthening their market position.
Summary and Outlook: Building a Foundation for Growth
Summary and
Chemlite Innovation Berhad’s first quarterly report as a publicly listed company provides a foundational snapshot of its financial health. Despite the one-off listing expenses impacting the reported profit figures, the underlying business appears sound, especially when considering the normalised PAT. The significant cash injection from the IPO has dramatically strengthened its balance sheet, providing ample liquidity for planned business expansion and debt reduction.
The company’s reliance on the metal plating segment and the Malaysian market indicates clear core strengths. While the global E&E and semiconductor outlook presents both opportunities and risks, Chemlite’s strategic use of IPO proceeds for capacity expansion, R&D, and facility upgrades positions it for potential long-term growth. The management’s awareness of market challenges and their proactive plans to address them are encouraging.
Key points to monitor going forward include:
- The successful and timely execution of its IPO proceeds utilisation plans, particularly the cleanroom setup and machinery acquisitions.
- The impact of global semiconductor market trends and geopolitical developments on order volumes and revenue growth.
- Management’s ability to maintain healthy profit margins amidst potential increases in production costs or shifts in customer demand.
- The progress in securing vacant possession of the industrial land acquisition and its subsequent classification in financial statements.
It’s important for investors to consider these factors and conduct their own due diligence.
In conclusion, Chemlite Innovation Berhad has presented a reasonable first quarter post-listing, setting the stage for its future trajectory. The IPO has clearly provided a strong financial base for its ambitious expansion plans. The coming quarters will be crucial in demonstrating how effectively the company executes these strategies amidst the evolving market landscape.
What are your thoughts on Chemlite’s debut performance? Do you think the company can maintain this growth momentum and successfully navigate the industry’s challenges in the next few years? Share your insights in the comments below!
