Amlex Holdings: A Remarkable Profit Rebound Amidst Market Headwinds
Hello fellow investors and market watchers! Today, we’re diving deep into the latest financial report from Amlex Holdings Berhad, a key player listed on Bursa Malaysia’s LEAP Market, specializing in the manufacture of lead frames and other electronic packaging components. This report covers the half-year ended 31 March 2025, and it brings some truly eye-catching numbers that warrant a closer look.
The headline? Amlex has delivered a stunning surge in profitability for the period, showcasing remarkable resilience in what the company itself describes as an “unpredictable, hostile, and turbulent market.” This impressive rebound, particularly a staggering 3200% increase in profit after tax for the half-year, certainly captures attention and prompts us to understand the drivers behind this performance and what it means for the company’s future trajectory. Let’s unpack the details.
Core Data Highlights: A Closer Look at Amlex’s Performance
Amlex’s financial statements reveal a robust top-line growth coupled with an even more impressive bottom-line expansion.
Revenue Growth Momentum
The company’s revenue for the half-year ended 31 March 2025 saw a significant uplift, demonstrating strong demand recovery from existing customers.
Half-Year Ended 31 March 2025
Revenue: RM31,059,000
Half-Year Ended 31 March 2024
Revenue: RM25,728,000
This represents an increase of RM5.33 million, or a notable **20.72%** compared to the same period last year. For the cumulative 12 months ended 31 March 2025, total revenue stood at RM61.82 million, up from RM55.28 million in the previous corresponding period.
Profitability Soars
The most striking figure from this report is undoubtedly the surge in profit after tax (PAT).
Half-Year Ended 31 March 2025
Profit After Tax: RM1,322,000
Half-Year Ended 31 March 2024
Profit After Tax: RM43,000
This represents an astonishing increase of RM1.28 million, or **3200%**. The management attributes this significant improvement largely to stronger revenue performance and a more favourable product mix. Basic earnings per ordinary share also jumped from 0.02 sen to 0.49 sen for the half-year.
For the cumulative 12 months, profit after tax reached RM1.03 million, a substantial improvement from RM0.49 million in the previous year, with basic earnings per share rising from 0.18 sen to 0.38 sen.
Segmental Contributions
Amlex’s revenue growth was broad-based, with both its manufacturing segments contributing positively:
| Segments | 31.03.2025 (RM’000) | 31.03.2024 (RM’000) |
|---|---|---|
| Manufacture of lead frames | 23,670 | 18,840 |
| Manufacture of other electronic packaging and interconnect components | 7,389 | 6,888 |
| Total | 31,059 | 25,728 |
The manufacture of lead frames saw a robust **25.64%** increase in revenue, contributing RM4.83 million to the growth, while the electronic packaging and interconnect components segment grew by **7.26%**, adding RM0.50 million. This indicates a healthy recovery in demand across Amlex’s core product lines.
Financial Health Check
Looking at the balance sheet as of 31 March 2025, Amlex’s total equity increased to RM49.22 million from RM47.33 million a year ago, reflecting the improved profitability. Correspondingly, total liabilities decreased from RM25.31 million to RM23.39 million. This has led to an improvement in net assets per ordinary share, rising from 17.65 sen to 18.36 sen.
However, a glance at the cash flow statement for the year ended 31 March 2025 shows a decrease in net cash generated from operating activities, down to RM3.54 million from RM10.31 million in the previous year. This was primarily due to changes in working capital, particularly increases in inventories and trade and other receivables. The company also significantly increased its investing activities, with net cash used in investing jumping to RM2.51 million from RM0.70 million, mainly for the purchase of property, plant, and equipment, including a new operational facility. As a result, cash and cash equivalents at the end of the financial year decreased to RM5.60 million from RM9.14 million.
Risk and Prospect Analysis: Navigating a Turbulent Market
Amlex acknowledges the challenging external environment, describing the market as “unpredictable, hostile, and turbulent.” Despite this, the company remains resolute in its strategic approach.
The management’s outlook focuses on remaining vigilant and adapting business strategies to ensure profitability. This includes a continued emphasis on core strengths, enhancing operational efficiencies, and adapting to market conditions. This proactive stance is crucial for a company operating in the dynamic electronics manufacturing sector.
A significant point of interest is the company’s capital commitment. As at 31 March 2025, Amlex has approved but not yet contracted capital commitments of RM12.47 million for main building works, mechanical & electrical works, and infrastructure for a new operational facility at Batu Kawan Industrial Park, Penang. An additional RM0.43 million is contracted for piling & pile cap reinforcement works. This substantial investment signals the company’s long-term growth ambitions and its commitment to expanding capacity and capabilities, which could be a key driver for future revenue streams. However, such large investments will require careful financial management, especially given the current decrease in operating cash flows.
Summary and Outlook
Summary and
Amlex Holdings Berhad has delivered a compelling performance for the half-year ended 31 March 2025, marked by strong revenue growth and an exceptional rebound in profit after tax. The company’s core manufacturing segments have shown healthy recovery, contributing significantly to the overall positive results. The improved financial position, as reflected in higher equity and net assets per share, further underscores its stability.
However, the report also highlights the ongoing challenges posed by a volatile market and a noticeable decrease in operating cash flow for the full year. The substantial capital commitments for a new facility, while indicative of future growth potential, will require diligent execution and cash management.
Key points from this report include:
- Remarkable 3200% surge in half-year Profit After Tax driven by revenue growth and favorable product mix.
- Solid 20.72% increase in half-year revenue, with both lead frames and electronic packaging segments contributing.
- Improved balance sheet with higher total equity and net assets per share.
- Decreased operating cash flow for the 12-month period, warranting attention to working capital management.
- Significant capital commitment for a new operational facility, signaling future expansion and potential.
- Management’s commitment to adapting strategies and enhancing operational efficiencies in a turbulent market.
Amlex’s latest financial report paints a picture of a company that is not only recovering but strategically positioning itself for future growth, despite the prevailing market uncertainties. The impressive profit rebound is a testament to its operational improvements and demand recovery.
What are your thoughts on Amlex’s performance? Do you believe Amlex can sustain this impressive profit recovery and effectively leverage its new facility amidst the ongoing market volatility? Share your insights and perspectives in the comments section below!
