Wawasan Dengkil Holdings Berhad: A Deep Dive into Their Q3 FY2025 Performance Post-IPO
Greetings, fellow investors and market enthusiasts! Today, we’re taking a closer look at Wawasan Dengkil Holdings Berhad (Wawasan Dengkil), a name that recently joined the ACE Market of Bursa Malaysia on March 25, 2025. This report marks their unaudited interim financial results for the third quarter ended March 31, 2025, offering us a crucial first glimpse into their performance post-listing.
This quarter’s report is particularly interesting as it represents the first full quarter of operations since their Initial Public Offering (IPO). While we won’t have year-on-year comparisons for this specific quarter due to their recent listing, we can still glean valuable insights by comparing it against the immediate preceding quarter and examining the year-to-date performance. The company has demonstrated a resilient financial standing, though the one-off costs associated with its IPO have naturally impacted the bottom line. Let’s break down the numbers!
Core Financial Highlights: Navigating the Post-IPO Landscape
Wawasan Dengkil’s third quarter (Q3 FY2025) results show a robust operational foundation, albeit with the expected impact of listing-related expenses. Here’s a comparative snapshot of their performance:
Quarter-on-Quarter Performance (Q3 FY2025 vs. Q2 FY2024)
While the company was only listed recently, we can compare the current quarter’s performance against the preceding quarter (Q2 FY2024) to understand recent trends. It’s important to note that no comparative figures for the preceding year’s corresponding quarter are available due to Wawasan Dengkil’s recent IPO.
Q3 FY2025
- Revenue: RM40.63 million
- Gross Profit: RM6.15 million
- Profit Before Tax (PBT): RM2.93 million
- Net Profit (PAT): RM2.13 million
- Basic & Diluted EPS: 0.39 sen
- Gross Profit Margin: 15.13%
- PBT Margin: 7.21%
- PAT Margin: 5.23%
Q2 FY2024
- Revenue: RM48.05 million
- Gross Profit: RM6.71 million
- Profit Before Tax (PBT): RM4.51 million
- Net Profit (PAT): RM3.35 million
- Basic & Diluted EPS: Not Applicable (Pre-IPO)
- Gross Profit Margin: 13.97%
- PBT Margin: 9.38%
- PAT Margin: 6.97%
The Group recorded a revenue of RM40.63 million for the current quarter, which is a decrease of 15.44% compared to the preceding quarter’s RM48.05 million. This decline was mainly attributed to lower revenue from the trading segment, following the completion of a major customer’s project, and a reduction in the construction segment as several projects neared or reached completion.
Despite the revenue dip, the Gross Profit (GP) margin actually saw a slight increase to 15.13% in Q3 FY2025 from 13.97% in the preceding quarter. This improvement was primarily due to lower depreciation expenses in the hiring segment, as a majority of commercial vehicles had been fully depreciated, leading to a higher gross profit margin for that segment.
Profit Before Tax (PBT) stood at RM2.93 million and Net Profit (PAT) at RM2.13 million for the quarter. These figures were significantly impacted by one-off non-recurring listing expenses amounting to RM0.77 million. Without these expenses, the PBT and PAT for the current quarter would have been a healthier RM3.70 million and RM2.90 million respectively.
Year-to-Date Performance (YTD 31 March 2025)
For the cumulative nine months ended March 31, 2025, Wawasan Dengkil reported:
- Revenue: RM134.68 million
- Gross Profit: RM19.78 million
- Profit Before Tax (PBT): RM11.27 million
- Net Profit (PAT): RM8.17 million
- Basic & Diluted EPS: 1.51 sen
- Gross Profit Margin: 14.69%
- PBT Margin: 8.36%
- PAT Margin: 6.07%
Similar to the quarterly figures, the year-to-date results also include the impact of one-off listing expenses, totaling RM1.33 million for the cumulative period. Excluding these, the YTD PBT and PAT would have been RM12.60 million and RM9.50 million respectively.
Key Takeaway: While the quarter-on-quarter revenue saw a decline due to project completions, Wawasan Dengkil managed to improve its gross profit margin, showcasing efficiency in its hiring segment. The significant impact on net profit was primarily due to the one-off listing expenses, which are non-recurring in nature.
Segmental Performance: Construction Remains the Core
Wawasan Dengkil’s business is diversified across three main segments:
- Provision of construction services
- Provision of trading of construction materials
- Provision of machineries and commercial vehicles for hire
The construction services segment continues to be the primary revenue driver. For the third quarter, it contributed 92.1% of the total revenue, mainly from projects like the LRT Line 3 Project, Sungai Long Project, and Setia Alaman Project. For the cumulative quarter, construction services contributed 89.6% of total revenue. The slight increase in contribution percentage from construction in the current quarter was due to the decrease in revenue from the trading segment.
Financial Health: A Stronger Balance Sheet Post-IPO
The IPO has clearly bolstered Wawasan Dengkil’s financial position. As at March 31, 2025:
| Financial Metric | As at 31.03.2025 (RM’000) | As at 30.06.2024 (RM’000) |
|---|---|---|
| Total Assets | 196,316 | 173,123 |
| Total Equity | 100,225 | 66,373 |
| Total Liabilities | 96,091 | 106,750 |
| Cash and Bank Balances | 24,393 | 9,810 |
| Net Assets Per Share (RM) | 0.19 | *Not comparable (Pre-IPO shares)* |
The Group’s total assets increased significantly, primarily driven by a substantial increase in cash and bank balances following the IPO. Total equity also saw a healthy jump, reflecting the fresh capital injection. Correspondingly, total liabilities decreased, indicating a stronger balance sheet and improved financial leverage. The net assets per share, calculated based on the post-IPO share capital of 540,128,760 ordinary shares, stands at RM0.19.
From the IPO proceeds of approximately RM27.01 million, about RM1.95 million has been utilized for estimated listing expenses as of March 31, 2025, leaving a balance of RM25.06 million for future planned utilization, including project working capital, general working capital, repayment of bank borrowings, and purchase of machineries and commercial vehicles.
Outlook and Strategic Direction
Looking ahead, Wawasan Dengkil appears to be strategically positioned to capitalize on the growth opportunities within Malaysia’s construction sector. The recent Budget 2025’s allocation of RM86.0 billion for development expenditure is a positive sign for the industry, suggesting continued government support for infrastructure projects.
The Group currently manages 13 ongoing construction projects with a substantial unbilled contract value (order book) of RM369.59 million as of March 31, 2025. This robust order book is expected to sustain the company’s earnings and cash flow for the next 2 to 3 financial years, with the Sungai Long Project alone contributing RM122.09 million, expected to be realized over the next 5 financial years.
Wawasan Dengkil’s strategic focus includes expanding its civil engineering services, particularly in property development, highways, and urban rail construction. Furthermore, aligning with the National Energy Transition Roadmap, the company intends to participate in tenders for solar farm-related infrastructure works, diversifying its revenue streams and contributing to the nation’s renewable energy push. By leveraging its diversified customer base, the Group aims to secure more projects in the coming year.
Summary and
Wawasan Dengkil Holdings Berhad’s third-quarter report provides an encouraging initial look at its post-IPO performance. Despite a quarter-on-quarter revenue dip due to project completions, the company managed to improve its gross profit margin, showcasing operational efficiency. The one-off listing expenses impacted the net profit for the quarter, but these are non-recurring costs. The balance sheet has been significantly strengthened by the IPO proceeds, providing a solid financial foundation for future growth.
The company’s substantial unbilled order book and strategic plans to expand into civil engineering and renewable energy infrastructure projects paint a positive picture for its future prospects, aligning well with national development initiatives. While the recent listing means we lack historical year-on-year comparisons, the existing order book and strategic direction suggest a company poised for continued activity in the coming years.
Key points to consider from this report include:
- The significant impact of one-off listing expenses on current quarter and year-to-date profitability, which distorts the underlying operational performance.
- The strong unbilled order book of RM369.59 million, providing revenue visibility for the next 2-5 financial years.
- The company’s strategic expansion into civil engineering for property development, highways, and urban rail, alongside participation in solar farm infrastructure tenders, indicating proactive growth initiatives.
- The improved gross profit margin in the current quarter, driven by operational efficiency in the hiring segment.
- The absence of comparative figures for the preceding corresponding quarter and period due to the recent IPO, which limits direct year-on-year trend analysis.
What are your thoughts on Wawasan Dengkil’s first post-IPO financial report? Do you believe their strategic focus on civil engineering and renewable energy infrastructure will drive sustainable growth? Share your views in the comments below!
