EXSIM HOSPITALITY BERHAD, formerly known as PAN MALAYSIA HOLDINGS BERHAD, has just released its interim financial report for the third quarter ended 31 March 2025, and the numbers tell a story of remarkable transformation. After navigating a period of losses, the company has surged back into profitability, largely thanks to strategic diversification into new business segments. This report isn’t just about financial figures; it’s a testament to a strategic pivot that’s beginning to bear fruit. Get ready to dive into the details of this impressive turnaround!
Overall Financial Performance: A Stunning Turnaround
The latest interim report reveals a significant improvement in EXSIM HOSPITALITY BERHAD’s financial standing for both the third quarter and the cumulative nine-month period ended 31 March 2025, compared to the same periods last year.
Third Quarter Ended 31 March 2025
Revenue: RM 55.72 million
Profit Before Taxation: RM 7.78 million
Profit After Taxation: RM 5.05 million
Earnings Per Share: 0.54 Sen
Compared to Third Quarter Ended 31 March 2024
Revenue: RM 1.17 million
Loss Before Taxation: RM (1.43) million
Loss After Taxation: RM (1.43) million
Loss Per Share: (0.15) Sen
This represents an astounding 4,646.3% increase in revenue and a significant shift from a loss of RM1.43 million to a profit of RM7.78 million in profit before taxation for the quarter! The company has successfully turned around its performance, moving from a net loss to a net profit of RM5.05 million, translating into positive earnings per share.
Cumulative Nine Months Ended 31 March 2025
Revenue: RM 77.43 million
Profit Before Taxation: RM 10.74 million
Profit After Taxation: RM 7.05 million
Earnings Per Share: 0.75 Sen
Compared to Cumulative Nine Months Ended 31 March 2024
Revenue: RM 4.19 million
Loss Before Taxation: RM (3.01) million
Loss After Taxation: RM (3.01) million
Loss Per Share: (0.32) Sen
The cumulative nine-month performance is equally impressive, with revenue soaring by 1,748.1% and the company successfully turning a RM3.01 million loss into a RM10.74 million profit before taxation. This strong growth trajectory highlights the positive impact of the company’s recent strategic initiatives.
What’s Driving This Growth? A Segmental Deep Dive
The stellar performance is primarily attributed to the successful integration of two new business segments: **Design and Fit-out** and **Hospitality Operator**. Let’s break down their contributions for the third quarter:
| Segment | Q3 FY25 Revenue (RM’000) | Q3 FY24 Revenue (RM’000) | Q3 FY25 PBT (RM’000) | Q3 FY24 PBT (RM’000) |
|---|---|---|---|---|
| Design and Fit-out | 54,555 | – | 11,146 | – |
| Hospitality Operator | 1,111 | – | (220) | – |
| Hotel | 55 | 1,174 | (2,120) | (1,224) |
| Investment Holding & Others | – | – | (1,022) | (207) |
The **Design and Fit-out segment** is the clear star, contributing the vast majority of the revenue and driving the overall profitability. This segment alone generated RM54.55 million in revenue and RM11.15 million in profit before taxation for the quarter, a completely new and significant revenue stream compared to the same period last year. This marks a substantial achievement for the company’s diversification efforts.
The **Hospitality Operator segment** also contributed a new revenue stream of RM1.11 million, though it’s currently operating at a slight loss as it establishes its foothold. Meanwhile, the traditional **Hotel segment** saw a significant decrease in revenue and an expanded loss, indicating ongoing challenges or strategic shifts within this area. The **Investment Holding and Others** segment also continued to record losses.
Financial Health Check: Balance Sheet & Cash Flow
The company’s strategic expansion is also reflected in its balance sheet. Total assets have surged from RM53.12 million as at 30 June 2024 to RM121.62 million as at 31 March 2025, primarily driven by increases in trade and other receivables and the acquisition of new assets. Total equity also increased from RM28.01 million to RM35.10 million, reflecting the accumulated profits.
However, it’s important to note the substantial increase in total liabilities from RM25.11 million to RM86.52 million, largely due to a significant rise in current borrowings (from RM1.27 million to RM32.60 million) and trade and other payables. This indicates the company is leveraging debt to fuel its expansion.
From a cash flow perspective, the company experienced a net cash outflow from operating activities of RM35.76 million for the nine-month period, compared to RM2.20 million in the same period last year. This larger outflow is likely due to increased working capital requirements for the new business segments as they ramp up operations. However, significant cash inflows from financing activities (RM31.54 million, primarily from bank borrowings) helped to offset this, leading to an improved cash and cash equivalents position of RM1.34 million at the end of the period, up from RM39k in the previous corresponding period.
Navigating the Horizon: Risks and Prospects
EXSIM HOSPITALITY BERHAD’s recent performance is a clear indicator of successful diversification, but like any strategic pivot, it comes with its own set of opportunities and challenges.
Bright Prospects Ahead
The future looks promising, especially for the newly established segments. The **Design and Fit-out segment** boasts a robust orderbook of RM201 million as of 31 March 2025, with a substantial RM143.92 million in new contracts secured during the quarter. This backlog is expected to contribute positively to revenue and profitability over the next 6 to 15 months, ensuring a steady income stream.
The **Hospitality Operator segment** is also expanding rapidly, having secured 536 managed property contracts. This growth aligns perfectly with the broader recovery of Malaysia’s tourism sector. Tourism Malaysia projects international arrivals to reach 31.3 million, generating RM125.5 billion in receipts, with an ambitious target of 35.6 million tourist arrivals and RM147.1 billion in receipts by Visit Malaysia 2026. This bodes incredibly well for the company’s expanding hospitality operations.
Furthermore, the company is not neglecting its traditional hotel segment. Plans are underway for a significant renovation of the Corus Paradise Resort, with work expected to commence in the second half of 2025 and operations resuming in the first half of 2026. This revamp aims to enhance marketability, boost occupancy rates, and introduce new revenue streams through improved food and beverage offerings.
Management is optimistic, anticipating sustainable growth in the short to medium term, with the fit-out and hospitality operator segments serving as key growth
