Malaysian investors, grab your coffee and let’s dive into the latest financial pulse from Sinaran Advance Group Berhad! The company has just released its unaudited consolidated financial statements for the quarter ended 31 March 2025, and while the numbers reveal a significant dip in revenue, there’s a silver lining that might just catch your eye: a notable reduction in losses.
This report offers a crucial snapshot of Sinaran Advance Group’s current standing, highlighting both the challenges faced in a dynamic market and the strategic efforts undertaken to navigate them. From a substantial revenue decline to a remarkable improvement in managing operational costs, let’s unpack the key figures that define the company’s performance this quarter.
Core Data Highlights: Navigating the Numbers
Year-on-Year Performance (Q1 2025 vs Q1 2024)
When we look at the first quarter of 2025 compared to the same period last year, the headline figure is certainly the revenue. Sinaran Advance Group recorded a revenue of RM2.95 million, a substantial decrease from RM11.56 million in the corresponding quarter of 2024. This significant 74% reduction is primarily attributed to the disposal of two subsidiaries, Kstar Sports Ltd and Sinaran Trilion Sdn Bhd, which contributed significantly to sales in the previous year.
Q1 2025
Revenue: RM2,949,000
Loss Before Tax: RM(1,963,000)
Loss After Tax: RM(1,963,000)
Basic Loss Per Share: RM(0.21)
Q1 2024
Revenue: RM11,560,000
Loss Before Tax: RM(2,525,000)
Loss After Tax: RM(2,497,000)
Basic Loss Per Share: RM(0.27)
Despite the sharp decline in revenue, the company demonstrated improved cost management. The loss after tax for the current quarter stood at RM1.96 million, a 21% improvement compared to the RM2.50 million loss recorded in the same period last year. This positive shift indicates better control over operational expenses, a crucial factor in mitigating the impact of lower sales.
Quarter-on-Quarter Performance (Q1 2025 vs Q4 2024)
Comparing the current quarter with the immediate preceding quarter (Q4 2024) reveals a more encouraging trend in revenue and a continuation of loss reduction.
Q1 2025
Revenue: RM2,949,000
Gross Profit: RM212,000
Loss After Tax: RM(1,963,000)
Q4 2024
Revenue: RM2,158,000
Gross Profit: RM(228,000)
Loss After Tax: RM(3,885,000)
Revenue for the current quarter increased by 37%, or RM0.79 million, compared to the RM2.16 million reported in the previous quarter. Furthermore, the loss after tax decreased by a significant 49%, or RM1.92 million, from RM3.88 million in Q4 2024 to RM1.96 million in Q1 2025. This substantial improvement in profitability quarter-on-quarter underscores the effectiveness of the company’s efforts in managing operational expenses.
Segmental Performance
The Group’s revenue for Q1 2025 was primarily driven by its construction segment in Malaysia. Specifically:
- Sinaran Infinity Sdn Bhd contributed RM1.23 million from interior design and renovation.
- Sinaran Trinity Sdn Bhd generated RM1.72 million from the installation of solar systems.
The segment analysis indicates that the ‘Construction in Malaysia’ segment recorded a loss before taxation of RM0.36 million, while the ‘Others’ segment (comprising investment holding, property investment holding, and wholesale of pharmaceutical and medical goods) incurred a larger loss of RM1.61 million, contributing to the overall group loss.
Financial Health: A Closer Look at the Balance Sheet
As of 31 March 2025, the Group’s total assets stood at RM17.16 million, a slight decrease from RM17.91 million at the end of 2024. Total equity also saw a reduction to RM15.16 million from RM17.13 million, largely reflecting the loss incurred during the quarter. However, total liabilities increased significantly to RM2.00 million from RM0.79 million, mainly due to a rise in trade payables.
Key Balance Sheet Figures (RM’000)
| Item | As at 31 Mar 2025 | As at 31 Dec 2024 |
|---|---|---|
| Total Assets | 17,163 | 17,912 |
| Total Equity | 15,162 | 17,125 |
| Total Liabilities | 2,001 | 787 |
| Net Assets Per Share (sen) | 1.66 | 1.87 |
A notable shift is observed in cash flow from operating activities, which moved from a positive RM0.43 million in Q1 2024 to a negative RM1.04 million in Q1 2025. This indicates that the company’s core operations are currently consuming cash. However, cash and bank balances increased to RM2.28 million from RM1.66 million, primarily due to a withdrawal of short-term deposits from investing activities.
Furthermore, the aging analysis of trade receivables shows an increase in overdue receivables, with RM2.20 million being more than 61 days past due, which is a point to monitor for potential collection challenges.
Risks and Prospects: Navigating a Challenging Landscape
Sinaran Advance Group acknowledges that the outlook for its order book in 2025 remains uncertain, largely due to a challenging operating environment. The construction and property industry, in particular, faces headwinds from elevated construction costs, labor shortages, and cautious investor sentiment.
However, the company also identifies potential opportunities. Continued government support for infrastructure development, particularly in transportation, renewable energy, and urban renewal, could provide a much-needed boost. While broader market conditions remain fragile, the company emphasizes that the sector presents significant opportunities for innovation, adaptation, and long-term growth, driven by evolving technologies, sustainability trends, and shifting work dynamics.
The company’s strategy appears to be focused on operational efficiency and adapting to the evolving market landscape, as evidenced by the reduction in losses despite revenue challenges.
Summary and
Sinaran Advance Group Berhad’s Q1 2025 results paint a mixed picture. While the significant drop in revenue is a direct consequence of strategic divestments, the substantial reduction in losses, both year-on-year and quarter-on-quarter, highlights effective operational expense management. The company is actively navigating a challenging market, focusing on core segments like interior design, renovation, and solar system installation.
Looking ahead, the construction and property sectors in Malaysia are indeed facing hurdles. However, the company’s ability to streamline operations and its focus on areas aligned with national infrastructure and renewable energy initiatives could position it for future stability and growth. Investors should consider the following key points:
- The revenue decline is primarily due to the divestment of subsidiaries, which is a strategic decision rather than a pure operational downturn.
- The significant improvement in loss reduction indicates tighter cost control and operational efficiency.
- The increase in trade payables and long-overdue receivables warrants close monitoring as it impacts cash flow and financial health.
- Future performance will largely depend on the company’s ability to secure new projects within the challenging construction and property landscape, particularly leveraging government infrastructure initiatives.
What are your thoughts on Sinaran Advance Group’s latest performance? Do you believe their focus on operational efficiency and strategic business units will be enough to navigate the current market challenges? Share your insights in the comments below!
