TRIVE Property Group: Navigating Through Shifting Tides – A Q3 FY2025 Performance Review
Greetings, fellow investors! Today, we’re diving deep into the latest quarterly report from TRIVE Property Group Berhad (TRIVE), covering the period ended 30 April 2025. This report offers a crucial glimpse into the company’s financial health and strategic direction amidst a dynamic economic landscape. While TRIVE has managed to secure a pre-tax profit, the underlying numbers reveal both opportunities and significant challenges, particularly in its key business segments. Let’s break down the details and understand what this means for the company’s journey ahead.
Core Data Highlights: A Closer Look at Performance
Quarterly Performance Snapshot (3 Months Ended 30 April 2025 vs. 30 April 2024)
TRIVE’s revenue for the current quarter saw a substantial decline, primarily driven by its Renewable Energy segment. However, the Group managed to significantly improve its pre-tax profit.
Revenue (RM’000)
Current Quarter (30.04.2025)
537
vs. Corresponding Quarter (30.04.2024): 2,778
Change: (2,241) (-81%)
Profit/(Loss) Before Tax (RM’000)
Current Quarter (30.04.2025)
178
vs. Corresponding Quarter (30.04.2024): 49
Change: 129 (+263%)
The significant 81% drop in revenue to RM0.54 million from RM2.78 million in the same quarter last year was largely due to the Renewable Energy segment’s decreased contribution of RM2.17 million, following the completion of an existing project. The Property Investment segment also saw a slight revenue decrease due to fewer tenants.
Despite the revenue decline, the Group’s pre-tax profit surged by 263% to RM0.18 million from RM0.05 million. This impressive turnaround was driven by lower pre-tax loss in the Renewable Energy segment (RM0.03 million vs. RM0.12 million loss) and a higher pre-tax profit in Property Investment (RM0.27 million vs. RM0.17 million), both mainly attributed to decreased operational costs. However, the “Other” segment reported a higher pre-tax loss of RM0.06 million, primarily due to expenses incurred for corporate exercises.
Year-to-Date Performance (9 Months Ended 30 April 2025 vs. 30 April 2024)
Looking at the cumulative nine-month period, the trend of declining revenue but improving pre-tax profit continues.
Revenue (RM’000)
Current Year-to-Date (30.04.2025)
2,071
vs. Corresponding Period (30.04.2024): 5,399
Change: (3,328) (-62%)
Profit/(Loss) Before Tax (RM’000)
Current Year-to-Date (30.04.2025)
176
vs. Corresponding Period (30.04.2024): 89
Change: 87 (+98%)
Cumulative revenue decreased by 62% to RM2.07 million, again primarily due to the Renewable Energy segment’s lower contribution of RM3.35 million following project completion. The Property Investment segment showed an insignificant revenue change but a significant pre-tax profit increase of RM0.20 million to RM0.39 million, thanks to service charge collection and increased rental rates.
The Group’s cumulative pre-tax profit nearly doubled to RM0.18 million from RM0.09 million. This was significantly bolstered by the Renewable Energy segment reporting a pre-tax profit of RM0.63 million, mainly due to a reversal of impairment loss on trade receivables of RM0.80 million from solar trading. However, the “Other” segment’s pre-tax loss widened by RM1.02 million, impacted by corporate exercise expenses and lower interest income.
Segmental Performance Breakdown (Cumulative Period Ended 30 April 2025)
To provide a clearer picture, here’s how each segment contributed to the overall performance for the cumulative period:
| Segment | External Revenue (RM’000) | Segment Profit/(Loss) Before Taxation (RM’000) |
|---|---|---|
| Renewable Energy | 400 | 626 |
| Property Investment | 1,671 | 385 |
| Others | – | (825) |
| Total (before eliminations) | 2,071 | 176 |
As evident from the table, the Property Investment segment is the primary revenue generator, while the Renewable Energy segment, despite lower revenue, contributed significantly to the pre-tax profit due to the impairment reversal. The “Others” segment, encompassing investment holding and dormant companies, continues to be a drag on overall profitability.
Basic Earnings Per Share (EPS)
For the current quarter, Basic EPS stood at 0.01 sen, up from 0.00 sen in the corresponding quarter last year. Cumulatively, it also improved to 0.01 sen from 0.00 sen.
Key Takeaway: While revenue has taken a hit due to project completions in the renewable energy sector, TRIVE’s ability to boost pre-tax profit, partly through cost management and a significant impairment reversal, is a positive sign of operational adjustments.
Risks and Prospects: Navigating a Challenging Environment
TRIVE acknowledges the increasing volatility in the global economic and geopolitical landscape. This cautious outlook is warranted given several factors:
- Global Economic Headwinds: Escalating trade tensions and regional conflicts are driving up global crude oil prices, which in turn increases costs across supply chains (logistics, raw materials). This ripple effect weakens consumer purchasing power, impacting overall market demand.
- Intensified Competition in Solar Energy: The solar energy division, a strategic pillar for TRIVE, faces intense market competition. An increasing number of players are putting significant downward pressure on project margins. Clients are highly cost-sensitive, forcing TRIVE to secure projects at minimal margin levels. This suggests a tough operating environment where profitability will be hard-earned.
- Policy Changes Impacting Property Investment: The expansion of the service tax scope in Malaysia, effective 1 July 2025, will introduce an 8% tax on commercial property leasing for entities with annual rental income exceeding RM500,000. This directly raises operating costs for tenants, potentially leading to a shift towards more affordable rental units. This could impact TRIVE’s property investment segment through tenant retention challenges or pressure on rental rates.
Despite these challenges, TRIVE states its commitment to deep analysis, weighing both risks and opportunities, and identifying mutually beneficial models to ensure long-term resilience. This proactive stance is crucial in adapting to the evolving market conditions.
Summary and Investment Recommendations
TRIVE Property Group Berhad’s Q3 FY2025 report paints a picture of a company actively navigating a complex business environment. The Group has demonstrated an ability to improve profitability despite a significant top-line contraction, primarily through cost management and a one-off gain from impairment reversal in its renewable energy segment. The property investment segment shows resilience, though it faces upcoming policy challenges.
However, the external environment presents considerable headwinds. The global economic volatility, coupled with intense competition in the solar energy sector and new tax policies affecting commercial property, will test TRIVE’s adaptability and strategic execution in the coming quarters. The Group’s focus on identifying “mutually beneficial models” and ensuring “long-term resilience” indicates a recognition of these challenges and a commitment to strategic adjustments.
Key points to consider:
- The substantial decrease in revenue, particularly from the Renewable Energy segment, highlights the project-based nature of this business and the need for new project acquisitions.
- The increase in pre-tax profit, while positive, was significantly aided by an impairment reversal. Investors should monitor if operational improvements can sustain this profitability without such one-off gains.
- The upcoming service tax on commercial property leasing is a direct challenge to the Property Investment segment, which has been a stable revenue contributor.
- The unutilized proceeds from the Rights Issue with Warrants, extended for utilization until 28 February 2026, represent a potential source for future investments or working capital, which could be critical for navigating current challenges.
From a professional standpoint, TRIVE’s report suggests a company in transition, adapting its strategies to a more demanding market. While the profit figures are encouraging, the underlying revenue trends and external pressures warrant close observation. The management’s acknowledgment of these challenges and their commitment to long-term resilience are positive, but the execution of their strategies will be key.
What are your thoughts on TRIVE’s performance this quarter? Do you believe the company can successfully navigate the intensified competition and policy changes to sustain its profitability in the long run? Share your insights in the comments below!
