Navigating the Tides: A Deep Dive into SEE HUP CONSOLIDATED BERHAD’s Latest Quarterly Performance
Greetings, fellow investors and market enthusiasts! Today, we’re unrolling the latest financial report from SEE HUP CONSOLIDATED BERHAD (SEE HUP), a diversified Malaysian company involved in transportation, logistics, trading, machinery hire, and property. Their financial results for the quarter ended 31 March 2025 have just been released, and they paint a picture of a company facing significant headwinds while strategically repositioning for future growth. While the headline figures show a widening loss, a closer look reveals the underlying dynamics and the company’s efforts to adapt to changing market conditions.
Key Takeaway: SEE HUP reported a higher loss for the quarter and year-to-date, primarily impacted by the completion of a major construction project and associated post-project costs. However, the company is actively focusing on its core logistics and warehousing segments, which are poised to benefit from regional shifts in global supply chains.
Core Financial Highlights: A Mixed Bag
Let’s start by dissecting the numbers. The latest quarter (31 March 2025) saw a notable decline in revenue and an increase in net loss compared to the same period last year. However, when we look at the year-to-date cumulative performance, there’s a slight improvement in the loss attributable to owners, despite an overall revenue dip.
Quarterly Performance (Q4 FY2025 vs. Q4 FY2024)
Current Quarter (31-Mar-25)
Revenue: RM27,228,000
Loss before taxation: RM(3,989,000)
Loss for the period: RM(3,877,000)
Basic Loss per share: (2.71) sen
Preceding Year Corresponding Quarter (31-Mar-24)
Revenue: RM37,925,000
Loss before taxation: RM(2,522,000)
Loss for the period: RM(2,805,000)
Basic Loss per share: (4.63) sen
The company’s revenue for the quarter saw a significant decrease of approximately 28.1% compared to the same period last year. This directly impacted profitability, leading to a wider loss before taxation and a higher loss for the period. However, it’s interesting to note that the basic loss per share for owners of the parent actually improved, narrowing from 4.63 sen to 2.71 sen, indicating a reduced loss attributable to shareholders despite the overall group loss.
Cumulative Year-to-Date Performance (FY2025 vs. FY2024)
Current Year To Date (31-Mar-25)
Revenue: RM118,701,000
Loss before taxation: RM(2,843,000)
Loss for the period: RM(3,539,000)
Basic Loss per share: (2.38) sen
Preceding Year To Date (31-Mar-24)
Revenue: RM125,910,000
Loss before taxation: RM(2,550,000)
Loss for the period: RM(3,217,000)
Basic Loss per share: (4.78) sen
For the full financial year, revenue declined by about 5.7%. The cumulative loss before taxation and loss for the period also increased. Similar to the quarterly trend, the basic loss per share attributable to owners of the parent significantly improved from 4.78 sen to 2.38 sen, suggesting that while the group faced challenges, the impact on the parent company’s shareholders was less severe this year.
Segmental Performance: A Closer Look at the Drivers
SEE HUP operates through three main segments, and their individual performance sheds light on the overall results:
| Segment | Current Quarter Revenue (RM’000) | Preceding Quarter Revenue (RM’000) | Current YTD Revenue (RM’000) | Preceding YTD Revenue (RM’000) | Current Quarter PBT (RM’000) | Preceding Quarter PBT (RM’000) | Current YTD PBT (RM’000) | Preceding YTD PBT (RM’000) |
|---|---|---|---|---|---|---|---|---|
| Transportation and logistics services | 26,645 | 28,824 | 114,857 | 105,239 | (620) | (3,390) | 2,033 | (2,044) |
| Trading, machinery hire and subcontracting works | 324 | 8,764 | 2,673 | 19,626 | (2,444) | 933 | (3,335) | (595) |
| Property and investment holding | 259 | 337 | 1,171 | 1,045 | (925) | (65) | (1,541) | 89 |
- Transportation and logistics services: This segment saw a 7.53% revenue decline in the current quarter due to temporary adjustments in a customer’s project timelines, impacting logistics service volume. However, on a year-to-date basis, this segment showed robust growth, with revenue increasing from RM105.24 million to RM114.86 million. Crucially, it also turned from a cumulative loss before taxation of RM2.04 million last year to a profit of RM2.03 million this year, showcasing its resilience and strategic importance.
- Trading, machinery hire and subcontracting works: This segment was the primary drag on the group’s performance. Its revenue plummeted from RM8.76 million to RM0.32 million in the quarter, and from RM19.63 million to RM2.67 million year-to-date. This significant drop is directly linked to the completion of Package 2 of Section 4 of the East Coast Rail Link Project (ECRL) in the previous year. With no active construction projects, the segment is now solely focused on machinery rental to optimize asset utilization. This shift resulted in the segment swinging from a profit to a substantial loss.
- Property and investment holding: Revenue for this segment slightly decreased in the current quarter due to the expiry of a tenancy agreement. While year-to-date revenue saw a modest increase, the segment’s profitability deteriorated, turning from a cumulative profit to a loss.
Financial Health: A Snapshot of the Balance Sheet and Cash Flow
As of 31 March 2025, SEE HUP’s financial position reflects the operational challenges:
- Net Assets: The company’s net assets decreased to RM77.41 million from RM83.48 million last year. Consequently, the net assets per share attributable to ordinary equity holders also declined from 100.99 sen to 90.76 sen.
- Cash and Cash Equivalents: Cash and cash equivalents at the end of the period stood at RM10.15 million, a decrease from RM15.29 million at the beginning of the financial period.
- Cash Flow from Operations: Net cash generated from operating activities saw a significant reduction, dropping to RM2.54 million for the year-to-date from RM8.35 million in the prior year. This decline aligns with the overall decrease in revenue and profitability.
- Investing Activities: Net cash from investing activities increased to RM3.20 million, largely driven by proceeds from the disposal of property, plant, and equipment.
- Financing Activities: Net cash used in financing activities decreased to RM10.87 million from RM14.45 million, partly due to a reduced increase in short-term bank borrowings and lower dividend payments to non-controlling interests.
Risks and Prospects: Navigating the Future
SEE HUP’s latest report highlights both the challenges it faces and the strategic opportunities it aims to capitalize on.
The primary risk impacting the current quarter’s losses stemmed from post-project costs related to the completed ECRL subcontracting works, alongside an impairment loss recognized as a prudent measure in line with MFRS 9. This underscores the inherent risks associated with large-scale construction projects and the need for careful financial provisioning once they conclude.
However, the outlook is not without its silver linings. SEE HUP remains optimistic about the growth prospects for its warehousing services. There’s a strong and sustained demand across various sectors, prompting the company to accelerate the development and enhancement of its warehousing facilities. This strategic focus is timely, especially with recent global trade tensions, which have pushed many tech companies to relocate production and shipping operations to more stable regions. Malaysia, in particular, is emerging as a key hub for global semiconductor manufacturers.
This shift presents a significant opportunity for SEE HUP’s logistics operations, positioning the company to play a crucial role in maintaining an efficient and resilient global semiconductor supply chain. The company’s ability to adapt and pivot towards high-demand sectors like warehousing and logistics could be a key driver for its future performance.
Summary and
In summary, SEE HUP CONSOLIDATED BERHAD’s latest quarterly report reflects a period of significant transition. The group’s overall profitability was negatively impacted by the winding down of a major construction project and associated costs. However, the underlying performance of its core transportation and logistics segment, particularly its year-to-date turnaround to profitability, offers a glimpse of resilience and potential. The company’s strategic focus on expanding its warehousing services and leveraging Malaysia’s growing importance in the global semiconductor supply chain are positive indicators for future growth.
While the immediate financial figures present a challenging picture, the company’s proactive measures to streamline operations and tap into burgeoning market demands could pave the way for recovery. Investors should closely monitor the progress of their warehousing facility enhancements and the actualization of opportunities arising from the semiconductor industry’s shift to Malaysia.
Here are some key points to consider:
- The significant decline in the “Trading, machinery hire and subcontracting works” segment is a major factor in the overall loss, but it’s a one-off impact from a completed project.
- The “Transportation and logistics services” segment shows promising year-to-date growth and a return to profitability, signaling strength in its core business.
- The company’s strategic pivot towards warehousing and logistics, driven by strong market demand and geopolitical shifts, is a key long-term growth driver.
- The increased loss before taxation is partly due to non-recurring post-project costs and impairment, which should be monitored for future quarters.
What are your thoughts on SEE HUP’s latest performance? Do you believe their strategic focus on logistics and warehousing will be enough to turn the tide in the coming quarters? Share your insights and perspectives in the comments section below!
