MUI Properties Berhad: A Q3 FY25 Turnaround Story Driven by Strategic Property Deals
Hello, fellow Malaysian retail investors! Today, we’re diving deep into the latest interim financial report from MUI Properties Berhad (Registration No. 196501000314 (6113-W)) for its third quarter ended 31 March 2025 (Q3 FY25). After navigating through challenging periods, the company appears to be charting a new course, showcasing a remarkable turnaround in its profitability and a significant boost in revenue. The highlight? A strong performance from its property division, underpinned by strategic land disposals that promise to reshape its future. Let’s break down the numbers and see what’s driving this momentum.
Core Data Highlights: A Resurgent Performance
MUI Properties Berhad has reported impressive figures for both the quarter and the cumulative nine months, marking a significant shift from the losses incurred in the previous year.
Quarterly Performance (Q3 FY25 vs Q3 FY24)
Q3 FY25 (Ended 31 March 2025)
Revenue: RM38,307k
Profit Before Taxation (PBT): RM11,280k
Profit After Taxation (PAT): RM7,966k
Earnings Per Share (EPS): 0.54 Sen
Q3 FY24 (Ended 31 March 2024)
Revenue: RM8,207k
Loss Before Taxation (LBT): (RM396)k
Loss After Taxation (LAT): (RM136)k
Loss Per Share (LPS): (0.08) Sen
The third quarter saw a stunning 366.8% increase in revenue, soaring from RM8.2 million to RM38.3 million. This surge transformed a loss before taxation of RM0.4 million in Q3 FY24 into a robust profit of RM11.3 million in Q3 FY25. Similarly, profit after taxation turned positive, reflecting a significant improvement in the company’s operational efficiency and sales.
Cumulative 9-Month Performance (9M FY25 vs 9M FY24)
9M FY25 (Ended 31 March 2025)
Revenue: RM119,877k
Profit Before Taxation (PBT): RM18,471k
Profit After Taxation (PAT): RM9,961k
Earnings Per Share (EPS): (0.06) Sen
9M FY24 (Ended 31 March 2024)
Revenue: RM33,776k
Loss Before Taxation (LBT): (RM2,191)k
Loss After Taxation (LAT): (RM2,905)k
Loss Per Share (LPS): (0.60) Sen
For the cumulative nine months, the revenue jumped by an impressive 254.9% to RM119.9 million from RM33.8 million. The Group successfully reversed a loss before taxation of RM2.2 million in 9M FY24 to a profit of RM18.5 million in 9M FY25. Although the earnings per share for the nine-month period remained in a loss position, it significantly narrowed from (0.60) sen to (0.06) sen, indicating a strong trajectory towards full profitability.
Business Unit Performance: Property Division Shines
The stellar performance is primarily attributable to the Group’s property division. In Q3 FY25, the property segment’s revenue surged by 366.8%, driven mainly by higher revenue recognition from the Antmed project (Lot 8322) and Industrial Park-1 (IP-1) in Bandar Springhill, Negeri Sembilan. For the nine-month period, the property division’s revenue increased by 255.4%, with contributions from Antmed, IP-1, and IP-2.
While the property segment delivered robust profits, the investment holding segment continued to incur losses, exacerbated by unrealised net foreign exchange losses. This offset some of the gains from the property division, particularly in the cumulative nine-month results.
Compared to the preceding quarter (Q2 FY25), Q3 FY25 saw a decrease in revenue and profit before taxation, primarily due to lower revenue recognition from Industrial Park-1 (IP-1) and E1 Bungalow Land Lots (E1BLC) in Bandar Springhill.
Financial Health: Strengthening Balance Sheet, Increased Liabilities
As of 31 March 2025, MUI Properties’ total assets grew to RM643.5 million from RM495.7 million at 30 June 2024. This increase was driven by higher inventories and trade & other receivables. Total equity also saw a healthy rise to RM467.6 million, pushing the net assets per share attributable to owners of the company to RM0.4886 from RM0.4787.
However, current liabilities experienced a substantial increase, reaching RM168.5 million from RM37.6 million. This was primarily due to a new revolving credit borrowing of RM34.0 million and a significant increase in contract liabilities to RM89.1 million, reflecting ongoing project developments.
Cash Flow Overview: Strategic Inflows
For the nine-month period, the Group recorded a net cash outflow from operating activities of (RM1.7) million, a shift from the RM23.1 million inflow in the prior year. This indicates that while revenue is strong, working capital needs have increased. Conversely, net cash from investing activities turned positive at RM0.5 million, a notable improvement from the (RM11.5) million outflow previously. This was aided by proceeds from the disposal of assets held for sale and property, plant & equipment.
Crucially, the Group saw a significant net cash inflow of RM34.0 million from financing activities, primarily from the drawdown of bank borrowings. This, combined with other activities, resulted in a healthy increase in cash and cash equivalents to RM118.3 million at the end of the period, up from RM76.9 million.
Risk and Prospect Analysis: Building a High-Tech Hub
The future prospects for MUI Properties Berhad appear promising, largely anchored by the strategic transformation of its Bandar Springhill development in Negeri Sembilan. The company has successfully executed two major land disposal deals through its subsidiary, West Synergy Sdn Bhd (WSSB):
- The RM80.8 million sale of 53 acres to Antmed Malaysia Sdn Bhd, a Shenzhen-based medical instruments manufacturer.
- The RM424.4 million disposal of 389.7 acres of industrial land to Gamuda DC Infrastructure Sdn Bhd (a Gamuda Group subsidiary) for the development of a high-tech digital infrastructure hub.
These transactions are set to be transformative for Bandar Springhill, positioning it as a thriving high-tech hub. This is expected to significantly boost industrial property values and stimulate demand for surrounding residential, commercial, and retail properties. The substantial proceeds from these disposals will also strengthen WSSB’s financial position, enabling reinvestment into new land acquisitions for sustainable long-term expansion.
However, like any business, MUI Properties faces certain challenges. The Group is currently involved in material litigation, with its subsidiary WSSB seeking damages exceeding RM15 million from Portland Arena Sdn Bhd for delays in project completion. Arbitration proceedings are ongoing, and the final outcome, including the extent of damages and recoverability, remains to be determined. Additionally, the investment holding segment’s susceptibility to foreign exchange losses presents a continued headwind that needs to be managed.
Summary and Outlook
MUI Properties Berhad’s Q3 FY25 report paints a picture of a company in a strong recovery phase, primarily driven by its robust property division and strategic asset monetization. The significant turnaround in revenue and profitability, especially for the nine-month period, underscores the positive impact of its development projects in Bandar Springhill. The strategic land disposals to Antmed and Gamuda are pivotal, setting the stage for Bandar Springhill to evolve into a high-tech industrial and digital hub, which could unlock substantial long-term value for the Group.
While the Group is navigating legal proceedings and managing foreign exchange exposures in its investment holding segment, the overall outlook appears positive, buoyed by a strengthened financial position and clear strategic direction in its core property development business. The company’s focus on transforming its landbank into higher-value industrial and digital infrastructure assets is a commendable move in the current economic landscape.
Key points to monitor for future performance include:
- Successful completion and execution of the strategic land disposals.
- Resolution of the ongoing material litigation and its financial impact.
- Management of foreign exchange risks within the investment holding segment.
- Progress and revenue recognition from ongoing and new property development projects.
Final Thoughts and Engagement
From a professional standpoint, it’s clear that MUI Properties is making deliberate moves to reposition itself within the Malaysian property market. The shift towards industrial and digital infrastructure developments, coupled with the strategic monetization of its landbank, indicates a forward-thinking approach to value creation. This strategic pivot could be a key differentiator in the competitive property sector.
What are your thoughts on MUI Properties’ latest results and its strategic direction? Do you think the company can leverage these strategic disposals to sustain its growth trajectory and fully capitalize on the transformation of Bandar Springhill into a high-tech hub? Share your insights and perspectives in the comments section below!
