Tuju Setia Berhad’s Q1 2025: Strong Profit Growth Amidst Market Challenges
Greetings, fellow investors and market enthusiasts! Today, we’re diving into the latest financial performance of Tuju Setia Berhad, a prominent player in Malaysia’s construction sector, as revealed in their First Quarter report for the period ended 31 March 2025. This report provides a fascinating look into the company’s resilience and strategic positioning, showcasing significant profit growth even as the broader economic landscape presents its own set of challenges. Get ready to uncover the key highlights, from impressive earnings surges to their robust order book, and what this means for their journey ahead.
Financial Performance: A Closer Look at Q1 2025
Tuju Setia Berhad has delivered a commendable performance in the first quarter of 2025, demonstrating strong growth in profitability compared to the same period last year. Let’s break down the key figures:
Year-on-Year Comparison (Q1 2025 vs Q1 2024)
Q1 2025
Revenue: RM134.87 million
Profit Before Tax (PBT): RM1.53 million
Profit After Tax (PAT): RM1.09 million
Earnings Per Share (EPS): 0.31 sen
Q1 2024
Revenue: RM133.47 million
Profit Before Tax (PBT): RM0.78 million
Profit After Tax (PAT): RM0.52 million
Earnings Per Share (EPS): 0.16 sen
This impressive growth is largely attributed to improved contributions from new projects undertaken by the Group. Revenue saw a slight increase of approximately 1.05%, but the real story is in the profit margins: PBT surged by nearly 97%, and PAT more than doubled with a 109.4% increase. This significant jump in profitability is a strong indicator of efficient project execution and perhaps better cost management.
Quarter-on-Quarter Comparison (Q1 2025 vs Q4 2024)
While the year-on-year figures are robust, it’s also insightful to compare the current quarter with the immediate preceding quarter:
Q1 2025
Revenue: RM134.87 million
Profit Before Tax (PBT): RM1.53 million
Profit After Tax (PAT): RM1.09 million
Q4 2024
Revenue: RM193.33 million
Profit Before Tax (PBT): RM0.91 million
Profit After Tax (PAT): RM0.64 million
Revenue for Q1 2025 was lower by 30.24% compared to Q4 2024, primarily due to the completion of three projects nearing the end of 2024. However, despite the revenue dip, Tuju Setia managed to record a higher profit before tax (up 67.69%) and profit after tax (up 70.47%), again highlighting the positive impact of contributions from new projects and potentially improved operational efficiency.
Snapshot of Financial Health (Balance Sheet & Cash Flow)
A quick glance at the balance sheet reveals a stable financial position. As of 31 March 2025, total assets stood at RM491.52 million, with total equity at RM74.36 million. The company’s total liabilities decreased to RM417.17 million from RM441.46 million at the end of 2024, indicating effective liability management. Cash and cash equivalents were at RM42.32 million, a decrease from RM51.39 million in December 2024, partly influenced by cash used in operating activities during the quarter.
Here’s a summary of key financial position indicators:
| Item | 31 March 2025 (RM’000) | 31 December 2024 (RM’000) |
|---|---|---|
| Total Assets | 491,524 | 514,722 |
| Total Equity | 74,358 | 73,267 |
| Total Liabilities | 417,166 | 441,455 |
| Cash & Cash Equivalents | 42,315 | 51,387 |
| Total Borrowings | 97,254 | 98,196 |
| Net Asset Per Share (RM) | 0.21 | 0.21 |
The company also reported a net cash outflow from operating activities of RM4.72 million for the quarter, compared to a net inflow of RM0.17 million for the financial year ended 31 December 2024. This is a point to monitor, but the overall financial health appears robust with a stable net asset per share.
Unbilled Order Book and Future Prospects
Tuju Setia’s future looks promising, underpinned by a substantial unbilled order book of RM2.08 billion as of 3 April 2025. This significant backlog is expected to provide positive contributions to the company’s financials up until the financial year ending 31 December 2028, offering a good degree of revenue visibility and stability.
However, the Board of Directors anticipates that the financial year ending 31 December 2025 will continue to be challenging. The current global environment, marked by geopolitical tensions and rising global trade tariffs, presents uncertainties that could impact the construction sector. To mitigate these risks, Tuju Setia has proactively implemented various measures aimed at managing and minimizing construction costs, alongside strategies to ensure the stability of its business operations and financial position.
Despite the prevailing uncertainties, the Board remains optimistic. With a healthy order book from reputable clients and strong financial resources, they are of the view that the Group’s financial results for the financial year ending 31 December 2025 will be satisfactory, barring any unforeseen circumstances.
It’s also worth noting the Group’s performance bond guarantees for construction projects, amounting to RM116.82 million. This reflects their ongoing project commitments and the trust placed in them by clients.
Summary and
Tuju Setia Berhad’s First Quarter 2025 report paints a picture of a company navigating a challenging environment with strategic agility. The significant increase in profit after tax, driven by new project contributions, is a testament to their operational effectiveness. While revenue saw a quarter-on-quarter dip due to project completions, the underlying profitability trend remains strong.
The substantial unbilled order book provides a solid foundation for future earnings, extending several years out. However, like many businesses, Tuju Setia is not immune to macroeconomic headwinds, particularly geopolitical tensions and trade tariffs, which could impact operational costs and market conditions.
Key points to consider from this report include:
- Robust Profit Growth: A remarkable surge in Q1 2025 PAT, demonstrating improved efficiency and contribution from new projects.
- Healthy Order Book: RM2.08 billion unbilled order book provides strong revenue visibility for the next few years.
- Proactive Risk Management: The company is actively implementing measures to manage costs and ensure business stability amidst global uncertainties.
- Shareholder Returns: The proposed final dividend of 0.30 sen per share for FY2024, subject to approval, indicates a commitment to shareholder returns.
The company’s management appears confident in achieving satisfactory results for the full financial year, backed by their strong client base and financial resources. As retail investors, observing how they execute their strategies in the face of ongoing challenges will be key.
Overall, Tuju Setia Berhad’s Q1 2025 report highlights a resilient performance with impressive profit growth. The company’s strategic focus on cost management and leveraging its robust order book seems to be paying off, providing a positive outlook despite a complex global economic landscape. It’s clear they are actively working to maintain stability and profitability.
What are your thoughts on Tuju Setia’s latest performance? Do you believe the company can sustain this growth momentum and navigate the global challenges effectively in the coming quarters? Share your insights in the comments section below!
