Malton Berhad’s Q3 FY2025: Navigating a Challenging Quarter Amidst Market Shifts
Published: [Current Date]
Greetings, fellow investors and market enthusiasts! Today, we’re diving deep into the latest financial performance of Malton Berhad, a prominent player in Malaysia’s property and construction sectors, as revealed in their unaudited interim financial report for the third quarter and financial period ended 31 March 2025.
The report paints a picture of a company adapting to a dynamic market landscape. While the latest quarter saw a significant dip in revenue and profit, largely due to the completion of key projects and lower work progress, Malton remains cautiously optimistic, buoyed by substantial unbilled sales and a strategic outlook on the Malaysian property market.
Let’s break down the numbers and understand what’s truly happening behind the headlines.
Quarterly Performance Snapshot: A Closer Look at the Numbers
Malton Berhad’s third quarter (Q3 FY2025) performance showed a noticeable decline compared to the same period last year. Let’s examine the key figures:
Individual Period (Q3 FY2025 vs. Q3 FY2024)
Q3 FY2025 (31 March 2025)
Revenue: RM99.93 million
Profit Before Tax (PBT): RM0.55 million
Net Profit: RM1.03 million
Basic Earnings Per Share: 0.30 sen
Q3 FY2024 (31 March 2024)
Revenue: RM168.04 million
Profit Before Tax (PBT): RM8.82 million
Net Profit: RM5.07 million
Basic Earnings Per Share: 0.96 sen
Key Takeaways: Revenue for Q3 FY2025 decreased by 40.5% to RM99.93 million, while Profit Before Tax (PBT) saw a sharp decline of 93.8% to RM0.55 million. Net profit also fell by 79.7% to RM1.03 million. This significant drop was primarily attributed to the completion of the Duta Park Residences @ Jalan Kuching project and lower work progress from certain construction projects.
Year-to-Date Performance (9M FY2025 vs. 9M FY2024)
Looking at the cumulative performance for the first nine months (9M FY2025), the trend of decline continues, though at a less steep rate than the individual quarter:
9M FY2025 (31 March 2025)
Revenue: RM341.24 million
Profit Before Tax (PBT): RM12.15 million
Net Profit: RM5.44 million
Basic Earnings Per Share: 1.38 sen
9M FY2024 (31 March 2024)
Revenue: RM510.33 million
Profit Before Tax (PBT): RM21.13 million
Net Profit: RM8.80 million
Basic Earnings Per Share: 1.67 sen
Key Takeaways: Revenue for 9M FY2025 decreased by 33.1% to RM341.24 million, and PBT declined by 42.5% to RM12.15 million. Net profit was down by 38.1% to RM5.44 million. The report notes that this was mainly due to lower work progress recognized from both property development and construction divisions. However, it’s worth highlighting that other operating income increased to RM7.5 million (from RM6.5 million last year), driven by higher interest income and rental income, and finance costs saw a reduction, declining from RM30.5 million to RM25.8 million due to full repayment of trade facilities.
Quarter-on-Quarter Comparison (Q3 FY2025 vs. Q2 FY2025)
Comparing the current quarter with the immediate preceding quarter provides insight into recent operational momentum:
Q3 FY2025 (31 March 2025)
Revenue: RM99.93 million
Profit Before Tax (PBT): RM0.55 million
Q2 FY2025 (31 December 2024)
Revenue: RM123.85 million
Profit Before Tax (PBT): RM6.73 million
Key Takeaways: Revenue decreased by 19.3% quarter-on-quarter, and PBT saw a significant 91.8% drop. This was primarily due to lower progress billings from Mutiara Hilltop @ Puchong and reduced sales of completed properties from Duta Park Residences.
Segmental Performance: The Drivers Behind the Numbers
Malton’s performance is driven by its core business segments:
Property Development and Trading
| Metric | 9M FY2025 (RM’000) | 9M FY2024 (RM’000) | Change (%) |
|---|---|---|---|
| Revenue | 246,205 | 290,204 | -15.2% |
| PBT | 22,445 | 32,779 | -31.5% |
The decline here is mainly due to the completion of high-margin projects like Duta Park Residences. While there were higher sales of completed properties, increased selling and distribution expenses also impacted the segment’s profitability.
Construction
| Metric | 9M FY2025 (RM’000) | 9M FY2024 (RM’000) | Change (%) |
|---|---|---|---|
| Revenue | 88,319 | 214,405 | -58.8% |
| PBT | 3,555 | 6,886 | -48.4% |
This segment faced a significant slowdown, with lower work progress from ongoing projects such as The Maple Residences, which is now in an advanced stage of construction.
Share of Results of Associated Company
A positive note comes from Malton’s share of results from an associated company, which contributed RM1.3 million in profit for the year-to-date, a substantial increase from RM0.35 million in the preceding year-to-date. This reflects profit recognition from the associated company’s ongoing project.
Financial Health and Cash Flow
Malton’s balance sheet shows a slight decrease in total assets from RM2.27 billion (30 June 2024) to RM2.19 billion (31 March 2025). However, total equity increased from RM948.18 million to RM970.49 million, mainly due to the private placement of 45.6 million new ordinary shares, which raised RM16.87 million. Total liabilities also saw a reduction from RM1.32 billion to RM1.22 billion.
Cash flow from operating activities for the year-to-date period significantly decreased from RM187.42 million last year to RM25.22 million this year. Investing activities saw a net cash outflow of RM103.37 million, primarily driven by additions to land held for property development (RM72.83 million) and investment properties (RM32.99 million). However, financing activities generated a net cash inflow of RM7.02 million, a stark improvement from a net outflow of RM194.76 million in the prior year, benefiting from the private placement proceeds.
Risks and Prospects: Navigating the Future
The Malaysian property market in 2025 is anticipated to maintain steady growth, supported by robust economic fundamentals, ongoing infrastructure projects, and government initiatives focusing on affordable housing and sustainable urban development. This provides a generally positive backdrop for Malton’s core business.
Malton Berhad remains “cautiously optimistic” about its outlook for the current financial year ending 30 June 2025. The company emphasizes its resilience and vigilance in addressing market uncertainties. A key factor expected to contribute positively to earnings is its portfolio of ongoing development projects, including River Park @ Bangsar South, Rapid City Centre @ Johor, and Mutiara Hilltop @ Puchong, which collectively boast unbilled sales of RM476 million as of 31 March 2025. Additionally, the existing order book in its construction division is set to provide continued contributions.
The company also recently signed a Memorandum of Understanding (MOU) with Shenzhen Apexls Optoelectronic Co., Ltd to explore potential market demand for LED products, indicating a willingness to diversify and explore new revenue streams, though the impact of this is yet to be seen.
Summary and
Malton Berhad’s Q3 FY2025 report reflects a challenging quarter, marked by a significant decline in revenue and profit compared to the previous year. This was largely a consequence of the natural lifecycle of property development projects, with the completion of high-margin developments and lower work progress in construction. Despite these headwinds, the company’s strategic focus on its ongoing projects, substantial unbilled sales, and efforts to manage finance costs provide a foundation for future contributions.
The Malaysian property market’s positive fundamentals offer a supportive environment, yet the company acknowledges the persistent challenges of rising costs and construction complexities. Malton’s ability to leverage its unbilled sales and construction order book will be crucial in stabilizing and improving its financial performance in the coming quarters.
Key risk points to consider from this report include:
- The higher effective tax rate due to non-deductible expenses and losses from certain subsidiaries not qualifying for group relief.
- Continued lower work progress from ongoing construction projects as they approach completion stages.
- The impact of higher selling and distribution expenses on overall profitability.
- The sensitivity of property development revenue to the timing of project completions and sales recognition.
As we look ahead, Malton Berhad’s performance will hinge on its execution of existing projects, its ability to secure new ventures, and its adaptive strategies in a competitive and evolving market. The company’s efforts to streamline operations and enhance other income streams are positive signs of internal resilience.
What are your thoughts on Malton Berhad’s latest performance? Do you believe their unbilled sales and ongoing projects are sufficient to drive a stronger rebound in the coming quarters? Share your perspectives in the comments below!
