Master Tec’s Q2 2025 Report: Revenue Soars, But What About Profits?
Published: August 12, 2025
Master Tec Group Berhad, a prominent player in Malaysia’s wire and cable manufacturing sector, has just released its financial results for the second quarter ended June 30, 2025. The report reveals a compelling story of impressive top-line growth, strategic expansion, and a shareholder-friendly dividend announcement. However, a closer look at the numbers shows that this growth comes with its own set of challenges, particularly on the profitability front.
Let’s dive deep into the report to understand what these figures mean for the company and for you, the investor.
Key Highlight: Master Tec has declared a first interim single-tier dividend of 0.69 sen per ordinary share for the financial year ending 31 December 2025, rewarding its shareholders amidst its growth phase.
Core Data Highlights: A Tale of Two Trends
The second quarter of 2025 was marked by a significant surge in demand for Master Tec’s products, leading to a robust increase in revenue. This performance underscores the company’s strong market position and its ability to capture new opportunities.
Revenue Skyrockets on Strong Segment Performance
Master Tec’s revenue growth is nothing short of impressive, showcasing strong operational momentum compared to the same period last year.
Q2 2025 Revenue
RM104.82 million
Q2 2024 Revenue
RM72.85 million
The 43.88% year-on-year increase in revenue was primarily driven by the manufacturing segment, which remains the company’s core contributor. Sales of aluminium-cored LV power cables saw a substantial increase, alongside steady demand for copper-cored cables. Furthermore, the trading segment’s revenue improved significantly, and the newly added contract revenue segment (from the acquisition of Sediacom) began contributing positively to the top line.
Profitability Faces Headwinds
While revenue soared, profitability tells a different story. The Group’s pre-tax and net profits saw a slight decline, indicating that the cost of growth is making its mark on the bottom line.
Q2 2025 Pre-Tax Profit (PBT)
RM8.16 million
Q2 2024 Pre-Tax Profit (PBT)
RM8.76 million
The dip in PBT was mainly due to higher administrative expenses, which included one-off costs related to the proposed transfer from the ACE Market to the Main Market of Bursa Malaysia. Additionally, increased finance costs from borrowings taken on to fund operational and capital needs also weighed on profits.
Segment Breakdown: A Diversified Revenue Stream
A look at the revenue sources provides clarity on the drivers of growth. The manufacturing segment is the powerhouse, but other segments are rapidly gaining traction.
| Segment | Q2 2025 Revenue (RM’000) | Q2 2024 Revenue (RM’000) |
|---|---|---|
| Manufacturing | 91,035 | 71,749 |
| Trading | 8,951 | 1,096 |
| Contract Revenue | 4,829 | – |
| Total | 104,815 | 72,845 |
Strong Quarter-on-Quarter (QoQ) Momentum
Comparing this quarter to the immediate preceding one (Q1 2025), Master Tec demonstrated powerful sequential growth. Revenue surged by 49.22%, and Pre-Tax Profit jumped by an impressive 59.95%. This indicates accelerating business momentum heading into the second half of the year.
Risk and Prospect Analysis: Charting the Path Forward
Master Tec is not just resting on its laurels. The company is actively navigating the current economic landscape and positioning itself for future growth through strategic initiatives.
A Bright Outlook Supported by National Agendas
The future for Malaysia’s wire and cable industry looks promising. Key national initiatives like the Twelfth Malaysia Plan (2021–2025) and the National Energy Transition Roadmap (NETR) are expected to fuel demand for power cables, especially in the medium and high-voltage categories. Master Tec is strategically positioning itself to capitalize on this by expanding into Medium-Voltage (MV) cable manufacturing, with facilities already undergoing certification.
Strategic Collaborations to Unlock New Markets
To bolster its technical capabilities and market reach, Master Tec has entered into two significant Memorandums of Understanding (MOU):
- An MOU with Yangtze (Jiangsu) Marine Technology (YOFC Marine) for technical collaboration and distribution of high-specification cables.
- An MOU with Senari Synergy Sdn. Bhd. to explore setting up a cable manufacturing facility in Sarawak, tapping into regional growth.
These partnerships signal a clear intent to move up the value chain and expand its geographical footprint.
Navigating the Risks
Despite the positive outlook, the company faces challenges. The primary risks are rising operational costs and higher finance expenses, which are currently compressing profit margins. A higher effective tax rate in the current period also impacted net earnings. Managing these costs effectively will be crucial for translating strong revenue growth into sustainable profitability.
Summary and Investment Recommendations
Master Tec’s Q2 2025 performance paints a picture of a company in a strong growth phase. The remarkable 43.88% year-on-year revenue increase, coupled with a healthy dividend declaration, demonstrates operational strength and a commitment to shareholders. However, investors should also note the pressure on profitability from rising costs associated with expansion and corporate exercises. The company’s proactive strategies, including venturing into MV cables and forging strategic alliances, are promising steps towards securing long-term, high-value growth.
As an investor, here are the key points to monitor moving forward:
- Profit Margin Trends: Keep an eye on whether the company can improve its gross and net profit margins as revenue continues to grow.
- Execution of MV Cable Strategy: The successful launch and market adoption of its new Medium-Voltage cables will be a key catalyst.
- Progress on Strategic MOUs: The conversion of these partnerships into concrete revenue streams and technological advancements.
- Contribution from New Subsidiaries: The sustained performance and integration of Sediacom and the new engineering arm, MTE.
Final Thoughts
From a professional standpoint, Master Tec’s Q2 2025 report presents a classic growth story: aggressive top-line expansion coupled with the expected growing pains of rising costs and investments. The strategic moves into MV cables and regional expansion are crucial for long-term value creation and are aligned with Malaysia’s national development goals.
The key question for the future is one of balance. With the strong government push for infrastructure and energy transition, do you think Master Tec’s strategic investments will successfully translate into improved profitability in the coming quarters?
We invite you to share your thoughts and analysis in the comments below!
