Navigating the Storm: A Deep Dive into Sinmah Capital’s Latest Financials
Hello fellow investors and market enthusiasts! Today, we’re unrolling the latest financial report from SINMAH CAPITAL BERHAD (SMCAP) for its fifth quarter ended 31 March 2025. This report offers a crucial snapshot of the company’s performance and financial health, revealing significant shifts, particularly a notable loss, stemming from strategic provisions for ongoing projects. It’s a quarter that demands our attention, as it sets the stage for what SMCAP anticipates in the coming period. Let’s break down the numbers and understand the story behind them.
Core Data Highlights: A Quarter of Significant Provisions
SINMAH CAPITAL BERHAD has just released its results for the fifth quarter ended 31 March 2025, a period that reflects a strategic shift in accounting for project risks. Due to a change in the financial year-end from 31 December 2024 to 30 June 2025, direct comparisons to the same period last year are not available, which is an important point for investors to note. However, we can still glean significant insights from the current quarter’s performance and its comparison to the immediate preceding quarter.
Financial Performance Overview (Fifth Quarter Ended 31 March 2025)
The Group registered a revenue of RM 3.36 million for the fifth quarter. However, the headline figure is the significant Loss Before Taxation (LBT) of RM 32.39 million, leading to a Net Loss for the period of RM 32.42 million. This translates to a Basic Loss Per Share of (7.47) sen for the quarter.
For the financial period ended 31 March 2025 (cumulative quarter), the Group recorded a revenue of RM 24.41 million and a cumulative LBT of RM 45.72 million, resulting in a Net Loss of RM 45.57 million and a Basic Loss Per Share of (10.73) sen.
The primary driver for the substantial loss in the current quarter is the recognition of a foreseeable loss of RM 30.99 million on ongoing projects, particularly the Taman Gambir Perdana project, after a comprehensive review of its development schedule. Additionally, liquidated damages payable to housebuyers, amounting to RM 2.49 million, were also recognized during the financial period.
Comparison to the Preceding Quarter (Q4 2024)
When comparing the fifth quarter ended 31 March 2025 to the immediate preceding quarter ended 31 December 2024, the increase in loss is stark:
| Metric | 31 Mar 2025 (RM’000) | 31 Dec 2024 (RM’000) | Change (%) |
|---|---|---|---|
| Revenue | 3,358 | 3,377 | (1%) |
| Loss Before Interest & Taxation (LBIT) | (32,344) | (1,521) | (2,026%) |
| Loss Before Taxation (LBT) | (32,390) | (1,585) | (1,944%) |
| Net Loss for the Period | (32,419) | (1,579) | (1,953%) |
The significant jump in LBT from RM 1.59 million in the preceding quarter to RM 32.39 million is almost entirely attributable to the RM 30.99 million foreseeable loss provision.
Financial Health: Balance Sheet Snapshot
Let’s look at the company’s financial position as of 31 March 2025, compared to 31 December 2023:
As At 31 March 2025
Total Assets: RM 99,985,000
Total Equity: RM 43,311,000
Accumulated Losses: RM (72,627,000)
Net Assets Per Share: RM 0.0998
Cash and Bank Balances: RM 13,237,000
As At 31 December 2023
Total Assets: RM 103,997,000
Total Equity: RM 85,534,000
Accumulated Losses: RM (27,062,000)
Net Assets Per Share: RM 0.2054
Cash and Bank Balances: RM 5,161,000
The balance sheet shows a reduction in total assets and a significant decrease in total equity, largely impacted by the increased accumulated losses. Net assets per share have approximately halved. On a positive note, cash and bank balances have increased substantially, partly due to the proceeds from the private placement.
Cash Flow and Corporate Activities
The Group generated RM 8.008 million in net cash from operating activities for the period ended 31 March 2025, which is a healthy sign despite the reported losses. This indicates that their core operations are still generating cash before accounting for non-cash provisions. Financing activities saw a net outflow of RM 2.248 million, which included net repayments on bank borrowings but was partially offset by the issuance of new shares from private placements.
Speaking of private placements, SMCAP successfully raised RM 3.342 million through two tranches of private placement shares, which have been fully utilized for property development and construction purposes. This capital injection has helped bolster the company’s liquidity position.
Risks and Prospects: Looking Ahead
While the current quarter’s results are undoubtedly challenging, driven by the significant foreseeable loss provision, it’s crucial to understand the implications for the future. The report explicitly states that the Taman Gambir Perdana project, having recognized all foreseeable losses in this quarter, is not expected to produce further gross losses going forward. This suggests that the worst of the impact from this specific project might be behind them.
Looking ahead, the Group expresses optimism for the next quarter ending 30 June 2025. This optimism is fueled by the anticipated gross profit contribution from another project, Laman Lentera. This indicates that while one project has faced headwinds, other ventures are expected to pick up the slack and contribute positively to profitability.
However, investors should remain mindful of the inherent risks in property development, such as market fluctuations, unforeseen project delays, and potential cost overruns. The substantial accumulated losses also highlight the need for consistent profitability in future quarters to rebuild shareholder value.
Summary and
In summary, SINMAH CAPITAL BERHAD’s latest quarterly report presents a mixed picture. The significant loss reported is primarily due to a prudent, albeit substantial, provision for foreseeable losses on a specific property development project. While this has heavily impacted the current quarter’s profitability and net assets, it also suggests a ‘clearing of the decks’ for that particular project, with no further gross losses expected from it.
The company’s ability to generate positive cash flow from operations and the successful completion of its private placement are positive aspects that provide some financial flexibility. The outlook for the next quarter, driven by the Laman Lentera project, offers a glimmer of hope for improved financial performance.
Key points to consider:
- The current quarter’s large loss is mainly due to a one-time foreseeable loss provision, not necessarily a reflection of ongoing operational cash burn.
- The Taman Gambir Perdana project is expected to no longer incur gross losses after this provision.
- The Laman Lentera project is anticipated to contribute positively to gross profit in
