OCK Group Berhad: Navigating Growth in a Dynamic Landscape – A Deep Dive into Their Latest Financials
Ever wondered how Malaysia’s key players in telecommunications and green energy are charting their course in a rapidly evolving market? OCK Group Berhad, a prominent name in telecom network services and renewable energy, has just released its latest quarterly report for the period ended 31 March 2025. This report offers a crucial glimpse into their financial health and strategic direction, particularly as the company transitions its financial year end from 31 December 2024 to 30 June 2025.
While the change in financial year end means we don’t have direct year-on-year comparisons for this specific quarter, the report still highlights OCK’s strategic positioning for future growth, underscored by a positive cumulative profit before tax for the period and ambitious expansion plans in Malaysia’s 5G rollout and regional markets. Let’s break down the key takeaways from their latest filing.
Financial Performance: A Closer Look at the Numbers
The report presents both the performance for the current quarter (ended 31 March 2025) and a cumulative period-to-date performance (from 1 January 2024 to 31 March 2025). Due to the change in financial year end, comparative data for the preceding year’s corresponding periods is not available. However, we can compare the current quarter with the immediate preceding quarter (ended 31 December 2024) to understand recent trends.
Cumulative Period-to-Date (1 Jan 2024 – 31 Mar 2025) Highlights:
- Revenue: RM786.14 million
- Profit Before Tax: RM65.96 million
- Profit for the Financial Period: RM49.56 million
- Profit Attributable to Owners of the Company: RM38.49 million
- Basic Earnings Per Share: 3.61 sen
For the current quarter, the group recorded a profit before tax of RM10.97 million and a profit for the financial period of RM8.01 million. Let’s compare this to the immediate preceding quarter:
Current Quarter (31 March 2025)
- Revenue: RM135.71 million
- Profit Before Tax: RM10.97 million
Immediate Preceding Quarter (31 December 2024)
- Revenue: RM165.81 million
- Profit Before Tax: RM13.63 million
The total revenue for the current quarter saw a decrease to RM135.71 million from RM165.81 million in the immediate preceding quarter. This was primarily attributed to lower contributions from the telco network services segment, along with the trading segment and Green Energy and Power Solution segment. However, this was partially offset by higher revenue from the M&E engineering services segment.
Segmental Performance (Cumulative Period to 31 March 2025)
A breakdown of the Group’s performance by business segment reveals the key contributors:
| Segment | Revenue (RM’000) | Profit/(Loss) Before Tax (RM’000) |
|---|---|---|
| TNS (Telco Network Services) | 680,140 | 58,984 |
| Green Energy and Power Solution | 36,861 | 4,843 |
| Trading | 22,726 | 5,100 |
| M&E Engineering Services | 46,411 | 10,774 |
| Investment Holding Company & Elimination | – | (13,740) |
| Group Total | 786,138 | 65,961 |
The Telco Network Services (TNS) segment remains the dominant revenue and profit driver for OCK Group, showcasing its core strength. The M&E Engineering Services segment also demonstrated a strong profit contribution relative to its revenue.
Financial Health: Balance Sheet and Cash Flow
As of 31 March 2025, OCK Group’s financial position shows some notable shifts compared to 31 December 2023:
As at 31 March 2025
- Total Assets: RM1,888.93 million
- Total Equity: RM778.71 million
- Total Liabilities: RM1,110.21 million
- Net Assets Per Share: RM0.65
As at 31 December 2023
- Total Assets: RM2,006.52 million
- Total Equity: RM795.64 million
- Total Liabilities: RM1,210.88 million
- Net Assets Per Share: RM0.67
While total assets, equity, and net assets per share saw a slight decrease, it’s important to look at the underlying movements. Cash and bank balances significantly reduced from RM220.85 million (31 Dec 2023) to RM79.53 million (31 Mar 2025). This was influenced by a reduction in “other investments” and a significant net repayment of borrowings.
From a cash flow perspective for the 15-month period ended 31 March 2025:
- Net cash generated from operating activities: RM104.48 million. This positive operational cash flow is a healthy sign, indicating the core business is generating sufficient cash.
- Net cash used in investing activities: RM(23.77 million), primarily due to acquisition of subsidiaries and purchase of property, plant and equipment, offset by decrease in other investments.
- Net cash used in financing activities: RM(214.46 million), mainly driven by net repayment of borrowings (RM250.06 million repaid vs RM126.01 million drawn down) and dividend payments.
- Net change in cash and cash equivalents: RM(133.76 million), leading to an ending cash and cash equivalents balance of RM69.27 million.
The substantial cash outflow from financing activities indicates the Group has been actively managing its debt, which is a positive sign for long-term financial stability.
Strategic Outlook: Powering Forward
OCK Group remains optimistic about its future prospects, outlining several key growth drivers:
- 5G Network Expansion in Malaysia: OCK is well-positioned to benefit from Malaysia’s ongoing 5G network rollout. Their appointment as a Network Facility Provider (NFP) partnering with U Mobile to deploy 5,000 to 7,000 5G sites nationwide by mid-2026 is a significant development, expected to boost site deployment activities and increase recurring income through tenancy and infrastructure demand.
- Expansion into High-Growth Sectors: Beyond traditional telecom, OCK is strategically targeting data centers, offering services in fiberization, power solutions, digital solutions, and renewable energy. The data center segment is identified as a major growth catalyst, aligning with Malaysia’s ambition to become an AI regional hub.
- Renewable Energy Expansion: The Group is making strides in its solar energy portfolio, with shareholder approval for a 116MW large-scale solar project in Sungai Petani, Kedah. This, coupled with initiatives like the Corporate Renewable Energy Supply Scheme (CRESS), supports Malaysia’s goal of 70% renewable energy capacity by 2050, demonstrating OCK’s commitment to sustainable growth.
- Regional Growth: OCK is also expanding its footprint in Vietnam and Indonesia. Vietnam’s rising demand for new 5G sites (target of 20,000 sites by 2025) presents significant opportunities for OCK’s regional tower portfolio. In Indonesia, the national 5G rollout is driving growth in managed services, enhancing the Group’s recurring income base.
Despite the quarter-on-quarter revenue dip, the company’s strategic moves into these high-growth areas suggest a strong focus on long-term value creation and diversification.
Dividends
For the current quarter ended 31 March 2025, OCK Group Berhad has not declared any new dividends. However, it’s worth noting that the company paid interim dividends of 1 sen per share in April 2024 (for FYE 2023) and 0.5 sen per share in October 2024 and April 2025 (for the financial period ending 30 June 2025).
Summary and
OCK Group Berhad’s latest quarterly report, while presenting a unique reporting period due to the financial year end change, paints a picture of a company actively repositioning itself for future growth. The strong cumulative profit before tax for the 15-month period and positive operating cash flow highlight a resilient core business. The slight decline in revenue for the current quarter compared to the immediate preceding quarter is noted, but the strategic focus on Malaysia’s 5G expansion, diversification into data centers, and aggressive push into renewable energy and regional markets demonstrates a clear long-term vision.
It is important to remember that this analysis is purely for informational purposes and does not constitute any form of investment advice or recommendation to buy or sell securities. Investors should conduct their own thorough research and consult with financial professionals before making any investment decisions.
- Strategic Pivot and Diversification: OCK is actively leveraging its core telecom expertise to expand into high-growth digital infrastructure and renewable energy sectors, which could provide new avenues for revenue and recurring income.
- Strong Operating Cash Flow: The ability to generate significant cash from operations is a positive indicator of the underlying health and efficiency of the business.
- Debt Management: The net repayment of borrowings suggests a disciplined approach to financial management, which can enhance long-term stability.
- Market Dynamics and Execution: While opportunities are abundant, the execution of large-scale projects like 5G site deployments and solar farms, along with managing competition in diverse sectors, will be key to realizing these prospects.
Your Thoughts & Beyond
OCK Group is clearly navigating a dynamic landscape, strategically diversifying while strengthening its core. The financial year end change makes direct comparisons tricky, but the underlying narrative points to a company with a strong long-term vision and active strategic initiatives.
Given OCK’s aggressive expansion into 5G and renewable energy, do you believe they can effectively manage the execution risks and significant capital commitments required to capitalize on these opportunities? Share your thoughts in the comments below!
