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Sasbadi’s Q3 2025 Report: Revenue Soars, But Are Rising Costs a Concern?
Sasbadi Holdings Berhad, a household name in Malaysia’s educational publishing landscape, has just released its financial results for the third quarter ended May 31, 2025. The report paints a picture of robust top-line growth and a significant jump in net profit, showcasing the company’s strong market position. However, a closer look reveals some underlying pressures that investors should be aware of. Let’s dive into the numbers and see what they tell us about Sasbadi’s performance and future direction.
Core Data Highlights: A Mixed but Promising Picture
This quarter’s results show a significant year-on-year revenue surge, driven by strong demand for its core products. While this is great news, pre-tax profits faced some headwinds. Let’s break it down.
Revenue & Profitability (Q3 2025 vs Q3 2024)
Sasbadi’s revenue saw an impressive increase, primarily fueled by higher sales of academic products compared to the same period last year. This demonstrates continued strong demand for its core print publishing materials.
Q3 FY2025 (Current Quarter)
Revenue: RM21.51 million
Q3 FY2024 (Comparative Quarter)
Revenue: RM15.97 million
A healthy 34.72% increase in revenue year-on-year.
Despite the strong revenue growth, the Profit Before Tax (PBT) saw a slight dip. The company attributes this to two main factors: higher overall operating costs and a loss incurred by its newly acquired subsidiary, Edu Paper and Stationery Sdn Bhd (EPSSB), which is currently in a seasonally weak period.
Q3 FY2025 (Current Quarter)
Profit Before Tax: RM0.92 million
Q3 FY2024 (Comparative Quarter)
Profit Before Tax: RM1.02 million
However, the story for net profit is strikingly positive. Net profit attributable to shareholders skyrocketed, translating into a much healthier bottom line for the quarter.
Q3 FY2025 (Current Quarter)
Net Profit: RM0.96 million
Earnings Per Share (EPS): 0.23 sen
Q3 FY2024 (Comparative Quarter)
Net Profit: RM0.25 million
Earnings Per Share (EPS): 0.06 sen
An impressive 292.24% surge in net profit attributable to owners of the company.
Business Segment Spotlight
To understand the performance drivers better, let’s look at how each business segment contributed during the quarter. The Print Publishing division continues to be the main engine of the group, delivering strong revenue and profit.
| Segment | Revenue (RM ‘000) | Profit/(Loss) Before Tax (RM ‘000) |
|---|---|---|
| Print Publishing | 19,531 | 2,261 |
| Digital/Online & Network Marketing | 655 | 203 |
| ALP & STEM Education | 643 | 201 |
| Others | 682 | (1,743) |
The “Others” segment, which includes the new subsidiary EPSSB and other unallocated corporate costs, registered a loss, weighing down the group’s overall pre-tax profit margin.
Risk and Prospect Analysis: The Road Ahead
Sasbadi’s management is cautiously optimistic about the future, outlining several key initiatives while acknowledging potential challenges.
Opportunities on the Horizon
The group is well-positioned to capitalize on several upcoming opportunities. A major one is the MADANI Teachers’ Book Voucher initiative, allocating RM100 to approximately 445,000 teachers. Sasbadi is strategically launching exclusive titles focused on teacher upskilling, including topics like Artificial Intelligence (AI) in education, to capture a slice of this RM44.5 million pie.
On the technology front, the collaboration with Agmo Holdings Berhad to develop a proprietary Large Language Model (LLM) is progressing. An LLM is a type of AI, similar to the technology behind ChatGPT, but in this case, it will be trained specifically on Malaysia’s national curriculum. This secure, custom AI could become an invaluable tool for teachers and students, aligning perfectly with the Ministry of Education’s Digital Education Policy.
Navigating the Headwinds
The primary challenge remains the pressure on profitability from rising operating costs, partly due to policy changes like the new minimum wage. Furthermore, the newly acquired subsidiary, EPSSB, is currently loss-making. The group has put strategies in place to expand EPSSB’s market to mitigate seasonal weakness, but a successful turnaround will be key to its contribution to future earnings.
Summary and Outlook
Sasbadi’s Q3 2025 results reflect a company with a resilient core business capable of delivering strong revenue growth. The significant increase in net profit is a major positive for shareholders. Looking ahead, the company’s future growth appears to be driven by strategic initiatives like the development of a proprietary educational AI and capitalizing on government programs like the teacher book vouchers. However, investors should remain mindful of the risks.
Disclaimer: This analysis is for informational purposes only and is based on the company’s latest quarterly report. It should not be construed as investment advice or a recommendation to buy or sell any securities. Please conduct your own due diligence before making any investment decisions.
Key risks to monitor include:
- Margin Compression: Persistent pressure from rising operating costs could continue to squeeze profit margins.
- Subsidiary Performance: The successful integration and turnaround of the newly acquired EPSSB is crucial to avoid it being a drag on earnings.
- Execution of New Ventures: The success of the AI LLM project depends on effective development and commercialization.
- Business Seasonality: The company’s performance is inherently tied to the academic calendar, which can lead to lumpy quarterly results.
Final Thoughts
Sasbadi is at an interesting crossroads, balancing the strength of its traditional publishing business with bold investments in digital innovation. Its ability to manage costs while executing its growth strategies will determine its trajectory in the coming quarters. The move into educational AI, in particular, is a forward-thinking strategy that could redefine its role in Malaysia’s education ecosystem.
Do you think Sasbadi’s strategic push into AI will be a game-changer for the company? Share your thoughts in the comments section below!
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