Ever wondered what fuels a company’s remarkable turnaround in a challenging economic landscape? TWL Holdings Berhad’s latest quarterly report for the period ended 31 March 2025 offers some compelling answers, showcasing a significant financial rebound driven primarily by its property development segment.
The company has delivered impressive growth in both its third quarter and year-to-date performance, signaling a strong operational momentum. This report provides a detailed look into the numbers, the strategic moves behind them, and what the future might hold for this Malaysian conglomerate. Let’s dive into the details!
Core Data Highlights: A Closer Look at the Numbers
Quarterly Performance (3 Months Ended 31 March 2025 vs. 31 March 2024)
TWL Holdings Berhad has demonstrated exceptional growth in its latest quarter, with key financial metrics showing substantial improvements compared to the same period last year. This surge is largely attributed to robust sales in its housing development projects.
Latest Quarter (31 Mar 2025)
Revenue: RM39.43 million
Profit Before Tax (PBT): RM6.79 million
Net Profit: RM3.89 million
Earnings Per Share (EPS): 0.06 sen
Previous Year Corresponding Quarter (31 Mar 2024)
Revenue: RM6.55 million
Profit Before Tax (PBT): RM1.22 million
Net Profit: RM1.02 million
Earnings Per Share (EPS): 0.02 sen
This translates to an astounding 502% increase in revenue, a 459% jump in Profit Before Tax, and a 280% rise in Net Profit for the quarter. These figures underscore a highly effective quarter, reflecting strong operational efficiency and market demand for the company’s offerings.
Year-to-Date Performance (9 Months Ended 31 March 2025 vs. 31 March 2024)
The positive momentum extends to the cumulative nine-month period, reinforcing the company’s upward trajectory:
Current Year-to-Date (31 Mar 2025)
Revenue: RM79.53 million
Profit Before Tax (PBT): RM17.86 million
Net Profit: RM12.36 million
Earnings Per Share (EPS): 0.20 sen
Previous Year-to-Date (31 Mar 2024)
Revenue: RM22.71 million
Profit Before Tax (PBT): RM7.67 million
Net Profit: RM6.62 million
Earnings Per Share (EPS): 0.12 sen
Over the nine-month period, TWL Holdings saw its revenue surge by 250%, Profit Before Tax by 133%, and Net Profit by 87%. This consistent growth across both short-term and cumulative periods highlights the sustainability of their performance.
Segmental Performance: Who’s Driving the Growth?
A deeper dive into the business segments reveals the primary drivers of this impressive performance:
| Segment | Profit/(Loss) Before Tax (9M FY2025) | Profit/(Loss) Before Tax (9M FY2024) | Notes |
|---|---|---|---|
| Property Development & Construction | RM18.15 million (Profit) | RM9.84 million (Profit) | This segment was the primary growth engine, driven by higher margins from housing development sales and lower administrative expenses. |
| Batching Plant | RM1.49 million (Profit) | RM(0.58) million (Loss) | A commendable turnaround, achieving profit mainly due to lower administration expenses and higher profit margins from concrete mix sales. |
| Plantation & Timber | RM(0.14) million (Loss) | RM0.15 million (Profit) | Experienced a loss due to higher administrative expenses and pending new timber contract works. |
| Medical Healthcare | RM(0.02) million (Loss) | RM0.01 million (Profit) | Also recorded a loss, primarily due to higher administrative expenses. |
| Others | RM(0.46) million (Loss) | RM(0.82) million (Loss) | Showed an improved loss position, attributed to lower administrative expenses. |
Financial Health Snapshot (As at 31 March 2025 vs. 30 June 2024)
The company’s balance sheet reflects its growth, with an expansion in total assets and equity:
- Total Assets increased to RM634.14 million from RM528.57 million.
- Total Equity grew to RM519.97 million from RM486.56 million, reflecting increased retained earnings and successful capital-raising activities like RCULS conversions and warrant exercises.
- Total Liabilities saw a significant increase to RM114.17 million from RM42.02 million. This substantial increase is primarily due to a rise in borrowings, including the drawdown of bridging loans and term loans, indicating active financing for ongoing projects and operations.
- Net Assets Per Share remained stable at RM0.08, showcasing a consistent underlying value per share despite the capital changes.
Cash Flow Overview (9 Months Ended 31 March 2025)
For the nine months ended 31 March 2025, TWL Holdings reported a net decrease in cash and cash equivalents of RM9.61 million. Operating activities used RM90.24 million in cash, mainly due to changes in working capital, particularly increases in inventories and contract assets. Investing activities also utilized RM11.20 million, primarily for fixed deposit placements and property, plant, and equipment purchases. However, these outflows were significantly offset by a robust RM91.84 million generated from financing activities, largely driven by proceeds from the exercise of warrants, conversion of RCULS, and the drawdown of a bridging loan. This indicates a strategic reliance on financing to fund operations and expansion.
Risk and Prospect Analysis: Navigating the Future
TWL Holdings operates within a dynamic economic landscape, and its future prospects are shaped by both macroeconomic trends and its strategic initiatives.
Malaysian Economic Outlook
According to Bank Negara Malaysia, the Malaysian economy grew by 4.4% in the first quarter of 2025, supported by steady domestic demand, positive labor market conditions, and sustained investment activities. While headline inflation moderated, core inflation edged higher. The Ringgit remained broadly stable. However, the outlook for 2025 suggests that growth may be slightly lower than earlier forecasts of 4.5% – 5.5% due to escalating trade tensions and heightened policy uncertainties globally. Despite these external risks, domestic demand is expected to remain a strong anchor, supported by wage and employment growth, and continued implementation of multi-year projects.
Property Sector Outlook
The Malaysian property sector maintains a positive outlook, particularly for affordable housing, driven by improving income and employment conditions and sustained demand. With the Overnight Policy Rate (OPR) at 3.0%, the environment remains conducive, though caution is advised regarding inflation and global market conditions. The government’s emphasis on job creation and income growth, coupled with policies favoring first-time homebuyers, is expected to continuously support the demand for affordable residential properties.
TWL’s Strategic Direction
Aligning with market demand, TWL Holdings is strategically poised to launch affordable residential properties in 2025/2026 with an estimated Gross Development Value (GDV) of approximately RM1.2 billion. The company’s focus is on fostering “comfortable living space” through “affordable building,” balancing affordability with livability. TWL also plans to actively seek new opportunities for attractive land-bank acquisitions to secure long-term growth, leveraging its strong balance sheet and access to capital markets.
The Group is committed to good governance, operational excellence, innovative marketing strategies, and prudent financial policies to ensure sustainable earnings growth. It aims to maintain market leadership through a balanced approach to sustainable growth and operational excellence.
Key Ongoing Projects
TWL Holdings has a robust pipeline of ongoing projects, predominantly residential developments, across various strategic locations in Malaysia, including:
- A 618-unit condominium development in Seri Kembangan.
- The Alam Impian Residential Project, comprising 224 double-storey link houses.
- A 300-unit condominium development in Bukit Serdang with comprehensive facilities.
- A significant development of 1,000 affordable housing units in Shah Alam.
- The Aster Residence, an exclusive 259-unit apartment development in Jalan Cheras.
- A joint-development project for 206 luxury condominium units in Kuala Lumpur.
- The Bukit Sri Putra project, offering 571 affordable apartments in Gombak.
- Taman Pinggiran USJ and Putra Heights projects, both focusing on affordable housing with 1,461 units and 1,139 units respectively.
Summary and Outlook
TWL Holdings Berhad’s latest quarterly report paints a compelling picture of a company in a strong growth phase, primarily fueled by its property development and construction arm. The significant increases in revenue and profit, both quarterly and
