As the financial year draws to a close, companies across Malaysia are unveiling their latest performance reports. Today, we delve into the unaudited fourth-quarter results for the financial year ended March 31, 2025, from OKA Corporation Bhd, a prominent player in the construction materials sector. This report offers a fascinating glimpse into a company that experienced robust full-year growth, yet faced notable headwinds in its most recent quarter.

While the Group delivered an impressive 11% increase in full-year revenue and a 21% jump in profit before tax, the final quarter presented a more challenging picture. Despite this, OKA Corporation Bhd is proposing a final single-tier dividend of 1.3 sen per share, a testament to its commitment to shareholder returns. Let’s break down the numbers and understand what this means for the company’s trajectory.

Core Data Highlights: A Tale of Two Periods

Quarterly Performance (Q4 FY2025 vs. Q4 FY2024)

The fourth quarter saw a mixed performance for OKA Corporation Bhd compared to the same period last year. While revenue saw a modest increase, profitability took a hit.

Revenue for the current quarter increased by 5% to RM36.35 million, primarily driven by a 4% increase in product volume sold. However, profit before tax saw a significant 25% drop to RM1.10 million, and profit for the period plummeted by 74% to RM0.46 million. This decline in profitability was mainly attributed to an increase in production costs during the quarter.

Year-to-Date Performance (FY2025 vs. FY2024)

Looking at the full financial year, the picture is much brighter, showcasing the Group’s overall resilience and growth momentum.

For the full financial year, OKA Corporation Bhd’s revenue grew by a healthy 11% to RM156.21 million, driven by an 11% increase in product volume sold. This strong top-line growth translated into a 21% increase in profit before tax, reaching RM13.50 million, and an 8% rise in profit for the period to RM9.99 million. Basic earnings per share also saw an 8% improvement to 4.07 sen.

Snapshot of Financial Health (Balance Sheet & Cash Flow)

The Group’s financial position remains sound. Total assets saw a slight increase to RM224.07 million as of March 31, 2025, from RM222.23 million a year ago. Net assets per share also improved from RM0.77 to RM0.79, reflecting a stronger equity base. Importantly, total liabilities decreased to RM30.54 million from RM32.79 million, indicating improved financial leverage.

Cash flow from operating activities was robust, with net cash generated increasing significantly to RM9.74 million for the full year, up from RM6.21 million in the previous year. This strong operational cash generation is a positive indicator of the company’s ability to fund its activities and investments internally.

Risks and Prospects: Navigating the Future Landscape

OKA Corporation Bhd operates within the dynamic construction sector, which is expected to continue its growth trajectory in the coming year. This optimism is fueled by ongoing flood mitigation projects by both government and private sectors, as well as the continuous development of data centers across the country. These projects represent significant opportunities for the Group’s products and services.

However, the path ahead is not without its challenges. The report highlights two key areas of concern:

1. Volatility in raw material prices: Fluctuations in the cost of raw materials can directly impact production costs and, consequently, profit margins.
2. Impact of minimum wage adjustment: Increases in minimum wage can lead to higher operating expenses, putting pressure on profitability if not managed effectively.

Despite these potential headwinds, the Group remains committed to a proactive strategy. They are actively exploring new market opportunities to drive sustainable growth and enhance long-term shareholder value. This forward-looking approach suggests a company poised to adapt and thrive in a competitive environment.

Dividends: Rewarding Shareholders

In a positive development for shareholders, the Board of Directors has proposed a final single-tier dividend of 1.3 sen per ordinary share for the financial year ended March 31, 2025. This is an increase from the 1.2 sen dividend proposed for the previous financial year and is subject to shareholder approval at the upcoming annual general meeting. The company also paid an interim single-tier dividend of 1.2 sen on May 23, 2025, for the current financial year.