Hello, fellow investors and market enthusiasts! Today, we’re diving into the inaugural quarterly financial report from Saliran Group Berhad, a name that recently joined the ACE Market of Bursa Malaysia on March 13, 2025. As a newly listed entity, this first quarter (Q1 2025) report for the period ended 31 March 2025 offers our initial glimpse into their post-IPO financial health and operational momentum.
The big question on everyone’s mind: How has Saliran performed since its listing? The report reveals a robust start, with a solid revenue figure and a healthy profit before tax, even after accounting for one-off listing expenses. This initial performance sets the stage for what could be an interesting journey ahead for this Malaysian player in the pipes, fittings, and steel products sector.
Let’s break down the numbers and see what Saliran’s Q1 2025 report tells us.
Core Data Highlights: A First Look Post-IPO
As this is Saliran Group Berhad’s first interim financial report since its listing, there are no comparative figures for the preceding corresponding quarter (Q1 2024) or year-to-date periods. Therefore, our analysis will focus on the absolute performance achieved in this quarter and its implications.
Financial Performance at a Glance
Saliran Group Berhad recorded a strong financial debut in Q1 2025:
- Revenue: RM95.00 million
- Profit Before Tax (PBT): RM4.38 million
- Profit After Tax (PAT): RM2.64 million
- Earnings Per Share (EPS): 0.69 sen
It’s worth noting that the PBT was impacted by one-off listing expenses related to the IPO, amounting to RM0.69 million. If we were to exclude these non-recurring costs, the Group’s adjusted PBT would have been a more impressive RM5.07 million, highlighting the underlying operational profitability.
Revenue and Profitability Comparison (Q1 2025 vs. Q1 2024 – Not Applicable)
Since this is the first interim report post-listing, comparative figures for the preceding corresponding quarter (Q1 2024) are not available. The data below reflects the performance for the current quarter ended 31 March 2025.
Current Quarter (31 Mar 2025)
Revenue: RM95,003,000
Profit Before Tax: RM4,380,000
Profit After Tax: RM2,637,000
Basic & Diluted EPS: 0.69 sen
Preceding Corresponding Quarter (31 Mar 2024)
Revenue: N/A
Profit Before Tax: N/A
Profit After Tax: N/A
Basic & Diluted EPS: N/A
Segmental Performance: Supply & Distribution Leads the Way
Saliran Group operates primarily in two segments: the supply and distribution of pipes, fittings, flanges, and steel products, and the manufacturing of fittings and flanges products. The Q1 2025 report clearly shows the dominance of their supply and distribution segment:
| Business Segment | Revenue (Q1 2025) | Contribution |
|---|---|---|
| Supply and distribution | RM93,907,000 | 98.85% |
| Manufacturing | RM1,096,000 | 1.15% |
| Total | RM95,003,000 | 100% |
Malaysia remains the Group’s largest market, contributing RM68.84 million, or 72.46% of the total revenue, underscoring their strong domestic presence.
Financial Health: A Stronger Position Post-IPO
The balance sheet as of 31 March 2025 reflects the impact of the recent IPO, which significantly bolstered the company’s equity and cash position:
As at 31 March 2025
Total Assets: RM215,203,000
Total Equity: RM66,054,000
Total Liabilities: RM149,149,000
Net Assets Per Share: RM0.17
Cash and Bank Balances: RM54,215,000
Fixed Deposits with Licensed Banks: RM19,698,000
Total Borrowings: RM105,531,000
As at 31 December 2024
Total Assets: RM183,139,000
Total Equity: RM43,435,000
Total Liabilities: RM139,704,000
Net Assets Per Share: RM0.14
Cash and Bank Balances: RM38,279,000
Fixed Deposits with Licensed Banks: RM17,436,000
Total Borrowings: RM108,843,000
The increase in total assets and equity is largely attributable to the RM21.71 million gross proceeds raised from the IPO. While total liabilities also saw an increase, the significant boost in cash and bank balances, along with a slight reduction in total borrowings, indicates a healthier liquidity position post-listing.
IPO Proceeds Utilization Status
Of the RM21.71 million raised from the IPO, Saliran has utilized RM5.189 million as of 31 March 2025. The majority of this has gone towards estimated listing expenses (fully utilized) and general working capital. The remaining funds are earmarked for strategic initiatives such as establishing a sales office in Indonesia, purchasing machinery and delivery trucks, and repaying bank borrowings, all within defined timeframes post-listing.
Risk and Prospect Analysis: Navigating the Future Landscape
Saliran Group acknowledges the dynamic global and domestic economic environment. While the company has started strong, it remains vigilant about potential headwinds and strategic opportunities.
Global and Domestic Economic Outlook
The global economic landscape is fraught with uncertainties, including recent tariffs imposed by the United States and the potential for reciprocal trade measures. Geopolitical tensions and fluctuations in foreign exchange rates could impact global supply chains, an area Saliran will need to carefully manage.
However, Malaysia’s growth outlook remains positive, with government forecasts projecting a 4.5% to 5.5% economic growth in 2025. This optimism is fueled by robust domestic spending and prudent government policies. The anticipated increase in activities within the construction sector, supported by the RM86 billion allocation for Development Expenditures in Budget 2025, is expected to be a significant sales driver for Saliran.
Challenges and Opportunities: The Carbon Tax
A notable challenge on the horizon is the impending carbon tax on the steel industry, set for implementation by 2026 as announced in Budget 2025. This presents both a compliance challenge and an opportunity for companies like Saliran. The Group’s upstream Joint Venture entity is actively assessing how to align with these new environmental regulations, which could influence operational costs and strategic adjustments.
Saliran’s Strategic Response
In response to these dynamics, Saliran Group is committed to disciplined cost management and cautious business expansion. They aim to improve operational efficiency across their segments. Looking ahead, the Group believes its prospects in the supply and distribution of pipes, fittings, flanges, and steel products—particularly for the oil and gas industry—are favorable. This confidence is underpinned by several strategic initiatives:
- Geographic Expansion: Plans to expand into Indonesia.
- Quality Enhancement: Strengthening quality assurance and control procedures.
- Logistics Improvement: Expanding their fleet of delivery trucks.
- Brand Development: Further developing and growing their jointly-owned “THF” brand products.
Barring unforeseen circumstances, these strategies, combined with a positive domestic market outlook, position Saliran Group for continued growth.
Summary and
Saliran Group Berhad has delivered a commendable first-quarter performance following its listing on the ACE Market. Despite being a newly listed entity with no prior comparative quarterly data, the reported revenue of RM95.00 million and an adjusted profit before tax of RM5.07 million (excluding one-off IPO expenses) demonstrate a solid operational foundation. The IPO has significantly strengthened the Group’s financial position, particularly its cash reserves, which will be crucial for funding its strategic growth initiatives, including regional expansion and logistics improvements. The dominance of the supply and distribution segment underscores its core strength, while the upcoming carbon tax presents a strategic challenge that the Group is actively addressing.
While the Malaysian economic outlook appears supportive, especially with government-led infrastructure spending, Saliran must remain agile in navigating global macroeconomic uncertainties and trade policy shifts. The company’s focus on cost management, operational efficiency, and targeted expansion plans in Indonesia, alongside brand development, are prudent steps to sustain its growth trajectory.
Key points to monitor moving forward include:
- The successful execution of their IPO proceeds utilization plan, especially for market expansion and asset acquisition.
- Their ability to manage the impact of global trade policies and foreign exchange fluctuations on their supply chain and profitability.
- How effectively they adapt to and mitigate the potential impact of the impending carbon tax on the steel industry.
- The performance of their expansion into Indonesia and the growth of the “THF” brand.
As a senior blogger, my objective perspective on this report is that Saliran Group Berhad has laid a solid foundation in its first quarter as a public company. The financial figures are encouraging, and the strategic plans outlined suggest a clear vision for growth. However, like any company, it operates within a broader economic context that presents both opportunities and challenges.
What are your thoughts on Saliran Group Berhad’s maiden quarterly report? Do you believe the company can maintain this growth momentum and successfully execute its expansion plans in the face of global economic uncertainties and the impending carbon tax? Share your insights in the comments below!
