Greetings, fellow investors and market watchers! Today, we’re diving deep into the latest financial performance of GLOBAL ORIENTAL BERHAD (GOB) as revealed in their interim financial report for the fourth quarter and full financial year ended 31 March 2025. This report offers a comprehensive look at the company’s journey through a dynamic economic landscape, showcasing significant revenue growth and strategic shifts. While the headline numbers for the full year paint a very positive picture of profit recovery, a closer look at the latest quarter’s performance reveals some interesting nuances, particularly regarding the composition of their earnings.
So, what’s the core takeaway? GOB has demonstrated robust revenue growth for the full year, coupled with a remarkable turnaround in overall profitability and cash flow from operations. However, the fourth quarter’s profit attributable to shareholders saw a decline, primarily due to changes in non-recurring income streams from the previous year. Let’s unpack the numbers and see what’s truly driving GOB’s performance.
Financial Highlights: A Tale of Growth and Strategic Shifts
The latest report presents a mixed yet largely positive financial narrative for Global Oriental Berhad. Let’s break down the key figures, comparing the current quarter against the same period last year, and the full financial year against the previous one.
Fourth Quarter Performance: Revenue Up, Attributable Profit Down
For the quarter ended 31 March 2025, GOB reported a strong increase in revenue, primarily driven by land sales and ongoing property development projects. However, the profit attributable to owners of the company experienced a notable decline compared to the corresponding period last year.
Q4 FY2025
Revenue: RM100.389 million
Profit Before Tax: RM15.675 million
Profit Attributable to Owners: RM7.337 million
Basic Earnings Per Share: 1.61 sen
Q4 FY2024
Revenue: RM81.752 million
Profit Before Tax: RM19.960 million
Profit Attributable to Owners: RM19.070 million
Basic Earnings Per Share: 4.19 sen
While revenue surged by a healthy 23%, the pre-tax profit saw a 21% decrease. The most significant impact was on the profit attributable to owners, which fell by 62%. This downturn was largely attributed to a substantial reduction in “other operating income” compared to the same period last year. In the previous year, this category included significant one-off items such as rental waivers, gains from lease terminations and modifications, and forfeited sums from purchasers. This highlights the importance of scrutinizing the quality of earnings beyond just the top-line figures.
Full Financial Year Performance: A Strong Rebound in Profitability
Looking at the full financial year ended 31 March 2025, GOB’s performance shows a remarkable improvement, indicating a positive trajectory for the core businesses.
FY2025
Revenue: RM215.744 million
Profit Before Tax: RM10.619 million
Profit After Tax: RM2.708 million
Profit Attributable to Owners: RM1.587 million
Basic Earnings Per Share: 0.35 sen
FY2024
Revenue: RM196.930 million
Profit Before Tax: RM5.702 million
Profit After Tax: RM0.935 million
Profit Attributable to Owners: RM5.511 million
Basic Earnings Per Share: 1.21 sen
For the full year, revenue increased by 10%, while pre-tax profit soared by an impressive 86%. Profit after tax saw an even more significant jump of 190%. This positive performance was primarily driven by the recognition of the sale of land in Bentong, robust sales and profit recognition from the ongoing Villa D’Polo development project, and solid contributions from the carpark operations business.
It’s worth noting the divergence in “Profit Attributable to Owners” for the full year, which saw a 71% decline despite the overall profit after tax increase. This is mainly due to the allocation of profit to non-controlling interests. In the previous year, non-controlling interests incurred a loss, meaning more of the group’s profit (or less of its loss) was attributable to the owners. In the current year, with the group returning to profitability, a portion of the profit is now attributable to non-controlling interests, reducing the share for the owners of the company. This is a normal accounting treatment when non-controlling interests become profitable alongside the group.
Quarter-on-Quarter Momentum
Comparing the current quarter (Q4 FY2025) with the immediate preceding quarter (Q3 FY2025) highlights strong sequential growth:
Q4 FY2025
Revenue: RM100.389 million
Profit Before Tax: RM15.675 million
Q3 FY2025
Revenue: RM43.108 million
Profit Before Tax: RM2.619 million
Revenue surged by an astounding 133%, and pre-tax profit exploded by nearly 500% quarter-on-quarter. This impressive sequential growth was primarily fueled by the recognition of the Bentong land sale and continued contributions from the Villa D’Polo project.
Segmental Performance: Property and Carparks Lead the Way
A deeper dive into the business segments for the full financial year reveals the drivers behind GOB’s improved performance:
| Segment | FY2025 Revenue (RM’000) | FY2024 Revenue (RM’000) | FY2025 Segment Results (RM’000) | FY2024 Segment Results (RM’000) |
|---|---|---|---|---|
| Property Development | 114,157 | 138,365 | 20,977 | (36,662) |
| Carpark Operations | 74,321 | 29,272 | 4,336 | 2,238 |
| Trading and Distribution | 10,140 | 13,958 | (596) | (249) |
| Investment Holding | – | 1,525 | (21,160) | 26,148 |
The Property Development segment showed a remarkable turnaround, shifting from a significant loss in FY2024 to a substantial profit in FY2025, despite a slight dip in revenue. This indicates improved project execution and cost management. The Carparks Operations segment also demonstrated strong growth in both revenue and segment results, reflecting increased urban activity. The Investment Holding segment, however, saw a substantial decline in results, likely influenced by the “other operating income” factors mentioned earlier.
Financial Health: Strengthening the Balance Sheet
GOB’s financial position as at 31 March 2025 shows efforts to strengthen its balance sheet:
Total Assets: RM773.625 million (down from RM847.448 million)
Total Liabilities: RM527.601 million (down from RM604.132 million)
Total Equity: RM246.024 million (up from RM243.316 million)
Net Assets Per Share: RM0.57 (stable)
Total Borrowings: RM198.048 million (down from RM222.417 million)
The decrease in total assets and liabilities, coupled with a slight increase in total equity, suggests a more streamlined and healthier financial structure. Notably, total borrowings have been reduced by 11%, which is a positive sign for financial stability. Furthermore, the company’s cash flow from operating activities turned significantly positive, generating RM22.292 million for the financial year, a stark contrast to the negative cash flow of RM20.600 million in the previous year. This turnaround in operational cash generation is a strong indicator of improved business fundamentals.
Navigating the Future: Risks and Prospects
Global Oriental Berhad acknowledges the challenging economic environment ahead. Bank Negara Malaysia projects a slightly slower growth pace for the Malaysian economy in 2025, influenced by escalating trade tensions and uncertainties surrounding new tariff regimes. Against this backdrop, GOB is adopting a cautious yet proactive approach.
The Group’s strategy revolves around several key pillars:
- Vigilance Across Operations: Maintaining a close watch on all business segments to adapt quickly to market changes.
- Project Completion and Monetisation: Prioritizing the timely completion of ongoing property development projects, such as Villa D’Polo, and effectively monetising completed inventories to ensure consistent revenue streams.
- Stable Carpark Operations: The carpark segment is expected to remain stable, benefiting from rising urban demand, and the Group will continue to seek new contracts to enhance its earnings.
This forward-looking strategy indicates a focus on operational efficiency and capitalizing on existing strengths while being mindful of external headwinds. The reduction in debt and positive cash flow from operations also provide a stronger foundation to navigate potential economic slowdowns.
Summary and
Global Oriental Berhad’s latest financial report for the period ended 31 March 2025 paints a picture of a company actively navigating a complex economic environment. While the fourth quarter’s profit attributable to owners saw a decline due to the absence of significant “other operating income” from the previous year, the full financial year’s performance demonstrates a robust turnaround in overall profitability and a strong positive shift in cash flow from operations. This is a testament to the improved performance of its core property development and carpark operations segments, which have successfully driven revenue and segment results.
The company’s focus on completing ongoing projects, monetizing inventories, and securing new contracts for its stable carpark business positions it to address the anticipated economic slowdown. The reduction in total borrowings and the significant improvement in cash generated from operations further strengthen its financial health, providing a more stable base for future endeavors.
Key positive factors from this report include:
- Significant turnaround in full-year profit before tax and profit after tax.
- Strong sequential growth in revenue and profit from Q3 to Q4, driven by key property sales.
- Remarkable recovery in the Property Development segment’s profitability.
- Consistent growth and stability in the Carparks Operations segment.
- Positive shift in cash flow from operating activities, indicating improved operational efficiency.
- Reduction in overall borrowings, enhancing financial stability.
Looking ahead, GOB’s prudent strategies amidst a projected slower economic growth demonstrate a commitment to sustainable performance. The focus on core business strengths and financial discipline will be crucial in the coming periods.
What are your thoughts on Global Oriental Berhad’s performance this quarter and their strategies for the upcoming year? Do you believe their focus on timely project completion and the stability of their carpark operations will be sufficient to maintain growth in a potentially challenging economic climate? Share your insights in the comments section below!
