As a senior blogger focused on the Malaysian market, I’m always keen to dive into the latest quarterly reports to understand how our local companies are navigating the current economic landscape. Today, we’re taking a closer look at TASHIN HOLDINGS BERHAD’s (TASHIN) unaudited condensed consolidated results for the first quarter ended 31 March 2025. This report offers a mixed bag of results, showcasing both challenges and impressive operational resilience.
While TASHIN faced a dip in revenue compared to the same period last year, the company demonstrated a remarkable turnaround in profitability from the immediate preceding quarter. Coupled with a strong improvement in cash flow and a healthier balance sheet, TASHIN’s Q1 2025 report paints a picture of a company proactively managing its operations amidst external headwinds. Let’s break down the key figures and insights from their latest filing.
Core Data Highlights: Navigating the Numbers
Quarter-on-Quarter Performance (Q1 2025 vs. Q1 2024)
Comparing the current quarter to the corresponding period last year reveals a challenging environment for TASHIN. While sales volume actually increased by 13.21%, a lower average selling price impacted the top line and profitability.
Q1 2025
Revenue: RM 86,246k
Profit Before Tax (PBT): RM 373k
Profit for the Period (PAT): RM 240k
Basic Earnings Per Share (EPS): 0.07 sen
Q1 2024
Revenue: RM 87,740k
Profit Before Tax (PBT): RM 1,950k
Profit for the Period (PAT): RM 1,590k
Basic Earnings Per Share (EPS): 0.46 sen
As you can see, revenue for Q1 2025 decreased by 1.70% to RM 86.25 million (RM’000 denotes Ringgit Malaysia thousands). More significantly, Profit Before Tax (PBT) saw an 80.87% decline to RM 0.37 million, and Profit After Tax (PAT) fell by 84.91% to RM 0.24 million. This was primarily attributed to a lower gross profit margin, a direct consequence of the reduced average selling price.
Sequential Performance (Q1 2025 vs. Q4 2024): A Strong Turnaround
While the year-on-year comparison highlights headwinds, looking at the immediate preceding quarter tells a more encouraging story about TASHIN’s operational improvements.
Q1 2025
Revenue: RM 86,246k
Profit Before Tax (PBT): RM 373k (Profit)
Gross Profit Margin: 6.90%
Q4 2024
Revenue: RM 91,105k
Profit Before Tax (PBT): RM (2,525)k (Loss)
Gross Profit Margin: 3.53%
Compared to Q4 2024, TASHIN’s revenue decreased by 5.33%, mainly due to lower sales volume and average selling price. However, the standout performance is the impressive turnaround in profitability. The Group moved from a Loss Before Tax (LBT) of RM 2.53 million in Q4 2024 to a PBT of RM 0.37 million in Q1 2025. This significant improvement of 114.77% was largely driven by an enhanced gross profit margin, which nearly doubled from 3.53% to 6.90%, thanks to a reduction in the average cost of raw materials. This indicates effective cost management and a more favorable raw material pricing environment for the company.
Financial Health: Balance Sheet and Cash Flow Strength
TASHIN’s balance sheet and cash flow statements also show positive developments, reflecting prudent financial management.
Balance Sheet Snapshot (As at 31 March 2025 vs. 31 December 2024):
- Cash and Bank Balances: Increased significantly from RM 18.46 million to RM 26.98 million.
- Inventories: Reduced from RM 139.23 million to RM 110.96 million, indicating better inventory management and conversion to cash.
- Trade Receivables: Decreased from RM 73.03 million to RM 68.57 million, suggesting efficient collection.
- Current Borrowings: Substantially reduced from RM 70.22 million to RM 49.08 million, a commendable effort in debt reduction.
- Total Liabilities: Decreased from RM 112.82 million to RM 87.45 million.
These figures collectively point to a stronger liquidity position and reduced financial leverage for TASHIN.
Cash Flow Dynamics (Q1 2025 vs. Q1 2024):
Perhaps the most impressive highlight from this report is the dramatic improvement in cash flow from operations:
Q1 2025
Net Cash Generated from Operating Activities: RM 30,650k
Net Increase in Cash & Equivalents: RM 8,521k
Q1 2024
Net Cash Generated from Operating Activities: RM (11,278)k (Used in)
Net Increase in Cash & Equivalents: RM (1,490)k (Decrease)
Moving from a negative operating cash flow of RM 11.28 million to a positive RM 30.65 million is a significant achievement. This robust cash generation allowed the company to reduce its borrowings and strengthen its cash reserves, demonstrating excellent working capital management.
Risk and Prospect Analysis: Navigating the Headwinds
TASHIN acknowledges that the Malaysian economic outlook for the remainder of 2025 will be heavily influenced by global trade developments, particularly the impact of U.S. tariffs, which continue to disrupt global supply chains and heighten market uncertainty. The company also highlights persistent external challenges such as pricing volatility, escalating input costs, and intensified market competition.
In response to these challenges, TASHIN is strategically focused on:
- Driving operational efficiency: Streamlining processes to reduce waste and improve productivity.
- Refining its cost structure: Continuously seeking ways to lower operational costs, as evidenced by the improved gross profit margin in Q1 2025.
- Bolstering supply chain resilience: Strengthening its supply chain to mitigate risks from global disruptions and ensure consistent material flow.
These strategies are crucial for TASHIN to maintain its competitive edge and ensure sustainable growth in a dynamic and challenging economic environment.
Summary and Outlook
TASHIN’s Q1 2025 report presents a nuanced picture. While the year-on-year financial performance saw a decline in revenue and profit due to lower average selling prices, the company demonstrated impressive agility and resilience by turning around its profitability from the immediate preceding quarter’s loss. This was largely driven by effective cost management and an improved gross profit margin.
Furthermore, the significant improvement in cash flow from operations and a healthier balance sheet, marked by reduced inventories, receivables, and borrowings, underscore the company’s strong financial discipline and operational efficiency. These factors position TASHIN well to navigate the external challenges it faces.
Looking ahead, TASHIN’s focus on operational efficiency, cost structure refinement, and supply chain resilience will be key to sustaining its performance amidst global trade uncertainties and market competition. The company appears to be taking proactive steps to fortify its foundation and adapt to the evolving market conditions.
What are your thoughts on TASHIN’s ability to navigate the challenging economic landscape and sustain its operational improvements? Share your views in the comments below!
