S & F Capital Berhad’s Latest Quarter: Navigating a Shifting Landscape
Another quarter, another look into the financial pulse of our local market players. Today, we’re diving deep into S & F Capital Berhad’s (S & F Capital) latest unaudited interim financial report for the period ended 31 March 2025. This report offers a crucial glimpse into the company’s performance, highlighting both challenges faced and strategic moves for future growth. While the headline numbers show a dip in revenue and profit compared to the previous year, the company is actively laying the groundwork for new projects and developments. Let’s unpack the details and see what this means for S & F Capital’s journey ahead.
Core Financial Highlights: A Closer Look at the Numbers
The latest report reveals a mixed bag of results, with a notable decrease in revenue and profit compared to the same period last year. This was primarily attributed to fewer ongoing projects with third parties. However, it’s important to look at the full picture, including the immediate preceding quarter and the cumulative nine-month performance.
Quarterly Performance: Facing Headwinds
Current Quarter (31 March 2025)
Revenue: RM6.73 million
Profit Before Tax (PBT): RM0.10 million
Net Profit: RM0.10 million
Basic Earnings Per Share (EPS): 0.02 sen
Corresponding Quarter Last Year (31 March 2024)
Revenue: RM22.36 million
Profit Before Tax (PBT): RM0.97 million
Net Profit: RM0.96 million
Basic Earnings Per Share (EPS): 0.17 sen
Comparing the current quarter to the same period last year, S & F Capital saw its revenue decline by a significant 69.9% and its profit before tax by 90.0%. This sharp contraction underscores the impact of the lower volume of ongoing projects.
Cumulative Performance: A Similar Trend
Current Year-to-Date (9 months ended 31 March 2025)
Revenue: RM33.10 million
Profit Before Tax (PBT): RM0.52 million
Net Profit: RM0.52 million
Basic Earnings Per Share (EPS): 0.11 sen
Corresponding Period Last Year (9 months ended 31 March 2024)
Revenue: RM66.97 million
Profit Before Tax (PBT): RM2.40 million
Net Profit: RM2.39 million
Basic Earnings Per Share (EPS): 0.42 sen
The nine-month cumulative figures mirror the quarterly trend, with revenue decreasing by 50.6% and profit before tax by 78.3% compared to the previous year. This indicates a consistent challenge throughout the financial year so far.
Immediate Preceding Quarter Comparison: A Glimmer of Improvement in Profitability
Current Quarter (31 March 2025)
Revenue: RM6.73 million
Profit Before Tax (PBT): RM0.10 million
Preceding Quarter (31 December 2024)
Revenue: RM10.69 million
Profit Before Tax (PBT): RM0.04 million
While revenue saw a 37.1% drop from the immediate preceding quarter, it’s noteworthy that the profit before tax actually increased by 138.1%. The report attributes this PBT improvement to higher “other income” from the sale of used construction materials, suggesting a one-off boost rather than a fundamental operational turnaround.
Financial Health: Balance Sheet and Cash Flow Insights
S & F Capital’s financial position as of 31 March 2025 shows some shifts:
| Item | As At 31 March 2025 (RM’000) | As At 30 June 2024 (RM’000) | Change (RM’000) | Percentage Change |
|---|---|---|---|---|
| Total Assets | 87,645 | 93,296 | (5,651) | -6.1% |
| Total Equity | 53,802 | 47,953 | 5,849 | 12.2% |
| Total Liabilities | 33,843 | 45,343 | (11,500) | -25.4% |
| Cash & Bank Balances | 1,181 | 12,894 | (11,713) | -90.8% |
| Net Assets Per Share (RM) | 0.11 | 0.11 | 0 | 0.0% |
While total assets saw a slight decrease, total equity increased, primarily due to a successful private placement in November 2024, which raised RM5.23 million. This private placement also helped reduce total liabilities significantly. However, a major concern arises from the cash and bank balances, which have plummeted by over 90% since June 2024. The cash flow statement further elaborates this, showing a net cash outflow from operating activities of RM21.51 million for the nine months ended 31 March 2025, a substantial increase from the RM3.69 million outflow in the same period last year. This indicates increased working capital requirements or slower cash conversion from ongoing projects.
Segmental Performance: Construction Dominates
S & F Capital’s primary business segment, “Properties and Construction,” remains the key revenue driver, contributing RM33.10 million in external revenue for the year-to-date, with a segment profit of RM1.93 million. The “Others” segment, which includes investment holding and management services, recorded a segment loss of RM1.41 million for the cumulative period.
Risks and Prospects: Building for the Future
The report acknowledges the current challenges but outlines a clear forward-looking strategy. Most of the Group’s current construction projects are nearing completion, leading to the observed dip in revenue. However, S & F Capital is actively tendering for new projects, which is crucial for replenishing its order book and driving future revenue.
On the property development front, the Kulim project is progressing as scheduled, with earthwork and preliminary work almost completed, paving the way for building works. This project, with an estimated construction cost of RM66 million, will be financed through both internal and external funding. Additionally, a proposed residential development in Ampang, Ipoh, has garnered favorable responses and is targeted to commence development in Q3 2025. The Group also recently entered into a contract to acquire a factory in Shah Alam, Selangor, signaling potential future growth avenues beyond traditional construction.
Summary and
S & F Capital Berhad’s latest quarterly report presents a picture of a company currently navigating a period of reduced activity in its core construction business. The significant decline in revenue and profit for both the quarter and cumulative nine-month period highlights the impact of fewer ongoing projects. The substantial cash outflow from operations and the sharp reduction in cash balances are key financial points to monitor closely.
However, the company is not standing still. The strategic initiatives, including active tendering for new projects, the progression of the Kulim and Ampang property developments, and the acquisition of a new factory in Shah Alam, indicate a proactive approach to securing future growth. The successful private placement also improved the equity position and reduced liabilities, providing some financial flexibility.
For investors, the immediate challenge lies in the current operational slowdown. The future hinges on the successful securing of new construction contracts and the timely execution and market acceptance of its property development projects. The ability to reverse the trend of negative operating cash flow will also be critical.
Key points to consider moving forward:
- Project Pipeline: The success in securing new construction projects will directly impact future revenue and profitability.
- Property Development Execution: The timely commencement and progress of the Kulim and Ampang developments are crucial for diversifying revenue streams.
- Cash Flow Management: Reversing the trend of significant cash outflow from operations will be essential for financial stability.
- Market Conditions: The overall health of the Malaysian construction and property sectors will influence the company’s prospects.
What are your thoughts on S & F Capital’s current trajectory? Do you believe their strategic moves in property development and new project tenders will effectively offset the challenges faced in their traditional construction business? Share your insights in the comments below!
