CWG Holdings Berhad’s Q3 2025: A Deep Dive into Their Financial Turnaround and Strategic Growth
Hello fellow Malaysian retail investors! CWG Holdings Berhad (CWG) has just unveiled its financial report for the third quarter ended 31 March 2025. This report isn’t just a set of numbers; it tells a compelling story of a company navigating economic shifts, executing strategic diversification, and returning to profitability. From robust revenue growth to a significant turnaround in earnings, let’s break down the key highlights and what they mean for CWG’s journey forward.
The headline? CWG has swung from a loss to a commendable profit this quarter, driven by strong performance across its business segments and the successful integration of recent corporate actions. This is a crucial read for anyone tracking companies focused on resilience and strategic expansion in the current market climate.
Core Data Highlights: A Quarter of Significant Gains
Individual Quarter Performance (Q3 2025 vs Q3 2024)
CWG’s latest quarter showcases an impressive financial recovery and growth trajectory. The company has successfully reversed its fortunes, moving from a loss-making position to a profitable one, demonstrating strong operational improvements and increased market demand.
Current Quarter (31/03/2025)
Revenue: RM 28,820,000
Profit Before Tax: RM 2,885,000
Net Profit: RM 2,059,000
Basic Earnings Per Share: 0.79 sen
Corresponding Quarter (31/03/2024)
Revenue: RM 13,207,000
Loss Before Tax: RM (1,538,000)
Net Loss: RM (1,099,000)
Basic Loss Per Share: (0.67) sen
Revenue surged by an impressive 118.2% to RM 28.82 million from RM 13.21 million in the same quarter last year. This substantial increase propelled the Group into a profit-before-tax of RM 2.89 million, a significant turnaround from the RM 1.54 million loss reported in the corresponding period. Consequently, net profit stood at RM 2.06 million, translating to basic earnings per share of 0.79 sen, a stark contrast to the 0.67 sen loss per share previously.
Year-to-Date Performance (9 Months Ended 31/03/2025 vs 31/03/2024)
The positive momentum extends to the cumulative nine-month period, reinforcing the sustainability of CWG’s recovery and growth initiatives.
Current Year-to-Date (31/03/2025)
Revenue: RM 72,276,000
Profit Before Tax: RM 4,190,000
Net Profit: RM 2,777,000
Basic Earnings Per Share: 1.17 sen
Corresponding Period (31/03/2024)
Revenue: RM 49,820,000
Loss Before Tax: RM (293,000)
Net Loss: RM (207,000)
Basic Loss Per Share: (0.13) sen
For the nine months, revenue grew by 45.1% to RM 72.28 million from RM 49.82 million. This led to a profit-before-tax of RM 4.19 million, a remarkable improvement from the RM 0.29 million loss in the prior year. Net profit for the period reached RM 2.78 million, with basic earnings per share at 1.17 sen, indicating a strong overall financial health and operational efficiency.
Segmental Performance: Diversification Paying Off
CWG’s strategic diversification into property development is clearly yielding results, complementing the steady growth from its manufacturing segment.
- Manufacturing Segment: This core business continues to be a key driver. For the nine months ended 31 March 2025, it generated RM 60.66 million in revenue, an increase of 21.8% from RM 49.82 million in the corresponding period last year. Profit before tax for this segment more than doubled, soaring by 124.2% to RM 1.90 million from RM 0.85 million, primarily due to increased domestic market demand.
- Property Development Segment: A relatively new venture for CWG, this segment contributed RM 11.62 million in revenue and a significant RM 3.76 million in profit before tax for the nine months ended 31 March 2025. As CWG’s involvement in this segment only began in October 2023, comparable figures from the previous year are not available, but its immediate contribution highlights the success of the Group’s diversification strategy.
Financial Status: Strengthening the Balance Sheet
The Group’s financial position has seen substantial changes, reflecting recent corporate exercises such as the acquisition of Unigenius Holding Sdn. Bhd. and the completion of a rights issue.
| Financial Indicator | As at 31/03/2025 (RM’000) | As at 30/06/2024 (RM’000) | Change (RM’000) | Percentage Change |
|---|---|---|---|---|
| Total Assets | 185,324 | 132,952 | +52,372 | +39.4% |
| Total Equity | 122,993 | 102,536 | +20,457 | +19.9% |
| Total Liabilities | 62,331 | 30,416 | +31,915 | +104.9% |
| Cash and Cash Equivalents | 23,172 | 15,738 | +7,434 | +47.2% |
| Net Assets per Share (sen) | 47 | 63 | -16 | -25.4% |
Total assets grew by nearly 40%, largely due to the acquisition of Unigenius Holding Sdn. Bhd. (UHSB), which brought in new intangible assets and goodwill. Total liabilities also increased significantly, reflecting the financing structure of this acquisition, including the issuance of Redeemable Preference Shares (RPS) and increased borrowings. While total equity increased, the net assets per share saw a decrease. This is primarily attributed to the substantial increase in the number of ordinary shares outstanding following the successful completion of the rights issue, which was aimed at funding the acquisition and general working capital.
Cash Flow: Robust Operational Generation
CWG’s operational cash flow saw a significant positive shift, indicating improved liquidity from its core business activities.
Current Year-to-Date (31/03/2025)
Net Cash From Operating Activities: RM 4,722,000
Corresponding Period (31/03/2024)
Net Cash Used In Operating Activities: RM (1,312,000)
The Group generated RM 4.72 million in net cash from operating activities for the nine months, a strong recovery from the RM 1.31 million cash outflow in the previous corresponding period. This positive operating cash flow highlights the efficiency of CWG’s business operations. Investing activities saw a substantial outflow of RM 29.15 million, largely due to the acquisition of UHSB, while financing activities brought in RM 28.92 million, primarily from the rights issue and the issuance of redeemable preference shares, balancing the investment needs.
Risks and Prospects: Navigating the Future
CWG’s outlook appears cautiously optimistic, balancing global economic challenges with strategic growth initiatives. The Board acknowledges that the global economy remains challenging, with potential fluctuations in demand, supply chain disruptions, and rising production costs that could impact the manufacturing business. However, by focusing on niche markets, driving strategic innovation, and enforcing strict cost controls, CWG believes it is well-equipped to adapt and thrive.
The property development segment is poised to be a significant contributor to the Group’s earnings, especially with a positive outlook on the Malaysian property market. This diversification is a key strategic move to mitigate reliance on a single segment and tap into new growth avenues.
While the recent acquisition of Unigenius Holding Sdn. Bhd. (UHSB) marks a strategic expansion into the printing and packaging materials business, integrating new acquisitions always comes with its own set of challenges. Managing the expanded operations, ensuring seamless synergy, and optimizing the newly acquired assets will be crucial for sustained growth. Additionally, the increase in borrowings and the issuance of Redeemable Preference Shares to fund the acquisition will require careful financial management to ensure a healthy debt profile.
Summary and Outlook
CWG Holdings Berhad’s Q3 2025 report paints a picture of a company undergoing a significant transformation. The return to profitability, driven by strong revenue growth in both its traditional manufacturing and new property development segments, is highly encouraging. The successful completion of the rights issue and the strategic acquisition of UHSB underscore CWG’s commitment to expansion and diversification, positioning the Group for future growth.
While the increased liabilities and the integration of a new business segment present challenges, the proactive strategies to address market headwinds and the positive outlook for the property market suggest a resilient path forward. The Group’s ability to generate positive cash flow from operations is also a strong indicator of its underlying business health.
Key points to consider moving forward:
- Integration of New Acquisitions: The success of integrating Unigenius Holding Sdn. Bhd. will be crucial for realizing the full benefits of this strategic expansion.
- Global Economic Headwinds: Continued vigilance on supply chain disruptions, rising production costs, and fluctuating demand in the manufacturing segment is necessary.
- Property Market Performance: The Malaysian property market’s positive outlook is a key growth driver, and its sustained performance will directly impact CWG’s new segment.
- Financial Management: Managing the increased debt and preference share obligations will be important for maintaining financial stability.
From a professional standpoint, CWG appears to be making calculated moves to enhance its long-term viability and profitability. The diversification into property development and the expansion in the printing sector suggest a forward-thinking management team aiming to build a more robust and diversified revenue base.
What are your thoughts on CWG’s latest performance? Do you believe their strategic diversification will continue to drive growth, or are the economic headwinds too strong to overcome? Share your insights in the comments below!
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