Greetings, fellow investors and market watchers! MAXIM GLOBAL BERHAD has just unveiled its financial report for the first quarter ended 31 March 2025, and it paints a picture of robust growth driven by its property development segment. While the numbers show impressive progress, it’s crucial to delve deeper into what’s driving this performance and what lies ahead for the company in a dynamic market.
The Group reported a significant 24% surge in revenue and a remarkable 33% increase in profit before taxation compared to the same period last year. This strong start to the financial year underscores the company’s operational efficiency and strategic project execution.
Q1 2025 Financial Performance: A Closer Look
MAXIM GLOBAL BERHAD’s financial results for the first quarter of 2025 demonstrate a solid upward trajectory. Let’s break down the key figures:
Q1 2025 (3 months ended 31 March)
Revenue: RM 111,186,000
Gross Profit: RM 27,691,000
Profit Before Taxation: RM 21,818,000
Net Profit for the Period: RM 15,462,000
Basic Earnings Per Share: 1.31 sen
Q1 2024 (3 months ended 31 March)
Revenue: RM 89,596,000
Gross Profit: RM 21,037,000
Profit Before Taxation: RM 16,443,000
Net Profit for the Period: RM 12,094,000
Basic Earnings Per Share: 1.14 sen
The impressive 24% increase in revenue, from RM89.6 million in Q1 2024 to RM111.2 million in Q1 2025, was entirely driven by the Group’s property business segment. This growth is primarily attributed to higher percentage completion achieved across its four ongoing property development projects, compared to three in the previous year’s corresponding quarter.
Profit before taxation saw an even stronger jump of 33%, rising from RM16.4 million to RM21.8 million. This indicates improved operational leverage and effective cost management, leading to a healthier bottom line. Consequently, net profit for the financial period grew by nearly 28%, reaching RM15.5 million.
Key Drivers of Property Segment Performance
The property segment was the sole contributor to the Group’s revenue and a significant driver of its profitability. Here’s a breakdown of contributions from their ongoing projects:
- Residensi Maxim Risen (Taman Desa Aman, Cheras): Contributed RM59.7 million, up from RM39.9 million in the prior year. This was due to a higher percentage completion of 11.6% (compared to 7.7% in Q1 2024). This project, with a 100% take-up rate, is a major earnings driver.
- Residensi The Atas (Taman Desa, Kuala Lumpur): A new condominium project launched in May 2024, it contributed RM24.8 million with a 6.4% completion rate this quarter. It already boasts a satisfactory take-up rate of approximately 61%.
- Residensi Max (Jalan Kolam Air 6, Kuala Lumpur): Contributed RM20.6 million, though lower than RM38.8 million in Q1 2024 due to its advanced stage of completion (91.0% cumulative completion).
- Residensi Max II (Prima Setapak, Kuala Lumpur): Contributed RM6.1 million, slightly up from RM5.3 million, with a 3.3% completion rate. This project aligns with the Group’s corporate social responsibility initiatives, focusing on affordable housing.
Financial Health: Balance Sheet and Cash Flow
As of 31 March 2025, MAXIM GLOBAL BERHAD’s financial position shows some notable shifts:
- Total Assets: Decreased slightly from RM1,075,356,000 at year-end 2024 to RM1,042,612,000.
- Total Equity: Increased to RM599,035,000 from RM582,291,000, indicating a stronger shareholder base.
- Total Liabilities: Reduced significantly from RM493,065,000 to RM443,577,000, driven by a reduction in both non-current and current liabilities.
- Net Assets Per Share: Improved to 71.6 sen from 70.2 sen as at 31 December 2024, reflecting the growth in equity attributable to shareholders.
Regarding cash flow, the Group reported net cash used in operating activities of RM36.4 million, an improvement from RM43.0 million used in the same period last year. However, net cash used in financing activities was RM18.7 million, a shift from net cash generated of RM0.2 million in Q1 2024. This was primarily due to higher repayments of bank borrowings (RM44.1 million) compared to new drawdowns (RM24.5 million), as the company actively manages its debt while financing ongoing projects.
Risks and Prospects: Navigating the Future
The Malaysian economy is projected to grow between 4.5% and 5.5% in 2025, supported by a resilient external sector and robust domestic demand. The real estate and business services subsector is forecast to increase by 6.3%, driven by sustained demand for professional services and an improvement in residential house sales. The construction sector is also expected to grow by 9.4%, fueled by strategic infrastructure projects and demand for industrial and affordable housing.
Despite this positive outlook, the Group acknowledges potential downside risks, including a global economic slowdown, increased trade and investment restrictions, and lower-than-expected commodity production. Geopolitical shifts, such as recent U.S. tariffs, also signal a move towards greater protectionism, which could disrupt global trade and raise costs.
However, potential upside factors include greater spillovers from the tech upcycle, more robust tourism activities, and faster implementation of investment projects.
MAXIM GLOBAL BERHAD’s Strategic Path Forward
Leveraging the positive property market outlook, MAXIM GLOBAL BERHAD has ambitious plans for 2025:
- New Landbank Development: The Group has earmarked approximately 15 acres of land for development in 2025, including its first foray into Johor Darul Ta’zim. This expansion indicates confidence in regional growth opportunities.
- Ongoing Projects: The four existing projects – Residensi Maxim Risen, Residensi Max, Residensi Max II, and Residensi The Atas – will continue to be key revenue and profit drivers. Residensi Max is expected to deliver vacant possession in mid-2025.
- Sustainable Growth: The company is committed to embedding decarbonization and sustainable growth strategies that support both environmental and social objectives in its business practices.
With a healthy financial position and disciplined financial management, the Group is cautiously optimistic about achieving improved financial performance in the financial year 2025.
Summary and Outlook
MAXIM GLOBAL BERHAD’s Q1 2025 report showcases a strong start to the year, primarily fueled by its thriving property development segment. The significant increases in revenue and profit before taxation, coupled with an improving net assets per share, highlight the company’s operational strength and effective project management. While the global economic landscape presents challenges, the positive domestic outlook for Malaysia’s real estate and construction sectors, along with the Group’s strategic expansion into new landbanks and commitment to sustainability, position it for continued growth.
Key positive takeaways from this report include:
- Substantial revenue and profit growth driven by ongoing property projects.
- Successful launch and satisfactory take-up rate of a new major project, Residensi The Atas.
- Improved financial health with increased equity and reduced liabilities.
- Strategic plans for new landbank acquisition and expansion into new regions like Johor.
- Commitment to sustainable development practices.
The company’s cautious optimism for the full financial year 2025 appears well-founded, given its current performance and forward-looking strategies.
What are your thoughts on MAXIM GLOBAL BERHAD’s Q1 performance? Do you believe their strategic landbank expansion and focus on ongoing projects will continue to drive growth in the coming quarters? Share your insights in the comments below!
For more detailed analysis on Malaysian companies, explore our other recent blog posts.
