Hextar Technologies Solutions Berhad: Navigating Growth and Strategic Shifts in a Dynamic Market
Greetings, fellow investors and market enthusiasts! Today, we’re diving deep into the latest financial report from Hextar Technologies Solutions Berhad (HTECH), a company that has been making interesting moves in the Malaysian market. Their fourth-quarter results for the period ended 31 March 2025 present a fascinating blend of strong quarterly recovery and ongoing strategic challenges, painting a picture of a company in active transition.
While the latest quarter showcased significant improvements in revenue and a notable reduction in losses, the full-year performance highlights the impact of broader market conditions and strategic investments. Let’s unpack the numbers and understand what’s truly driving HTECH’s journey.
Core Financial Highlights: A Tale of Two Timelines
The fourth quarter of the financial year 2025 (Q4FY25) brought some much-needed positive momentum for HTECH, particularly when compared to the same period last year. Here’s a snapshot:
Q4FY25 (3 Months Ended 31 March 2025)
Revenue: RM54,107k
Loss Before Tax: RM(6,674)k
Net Loss Attributable to Owners: RM(6,748)k
Basic Loss Per Share: (0.3) sen
Q4FY24 (3 Months Ended 31 March 2024)
Revenue: RM48,505k
Loss Before Tax: RM(9,278)k
Net Loss Attributable to Owners: RM(8,365)k
Basic Loss Per Share: (0.4) sen
This shows a remarkable turnaround for the quarter! Revenue surged by approximately 11.55%, driven by successful new orders. More impressively, the pre-tax loss narrowed significantly by about 28.07%, indicating a strong improvement in operational efficiency and reduced impairment provisions compared to the prior year’s corresponding quarter.
However, when we look at the full financial year performance, a different picture emerges:
YTDFY25 (12 Months Ended 31 March 2025)
Revenue: RM181,093k
Loss Before Tax: RM(21,814)k
Net Loss Attributable to Owners: RM(22,730)k
Basic Loss Per Share: (1.1) sen
YTDFY24 (12 Months Ended 31 March 2024)
Revenue: RM189,008k
Loss Before Tax: RM(15,022)k
Net Loss Attributable to Owners: RM(14,844)k
Basic Loss Per Share: (0.7) sen
For the full year, revenue saw a slight decrease of approximately 4.19%. More notably, the pre-tax loss widened by about 45.21%. This indicates that while the fourth quarter was strong, earlier quarters faced significant headwinds, particularly from a slowdown in building materials supply and the substantial operating costs associated with the technology business.
Segmental Performance: The Engines of Change
A deeper dive into HTECH’s business segments reveals the dynamics at play:
| Segment | Q4FY25 Revenue (RM’000) | Q4FY24 Revenue (RM’000) | Q4FY25 Profit/(Loss) Before Tax (RM’000) | Q4FY24 Profit/(Loss) Before Tax (RM’000) |
|---|---|---|---|---|
| Logistics | 43,708 | 40,951 | 2,703 | (1,039) |
| Warehousing | 2,604 | 52 | 1,813 | 69 |
| Trading | 5,602 | 6,876 | (665) | (3,989) |
| Technology | 8 | 1 | (6,765) | (4,892) |
- Logistics: This segment was a strong performer, with revenue increasing by 6.73% and moving from a loss to a pre-tax profit of RM2,703k. This improvement is attributed to higher demand for freight forwarding services, lower operating expenses, and a one-off disposal gain.
- Warehousing: A true standout! Revenue exploded from RM52k to RM2,604k, and profit before tax soared from RM69k to RM1,813k. This impressive growth is largely due to the tenancy of their Port Klang Free Zone warehouse, which commenced in Q4FY24.
- Trading: While Q4FY25 revenue saw a decrease of 18.4% due to weakened market conditions in earlier quarters, the segment significantly reduced its pre-tax loss from RM(3,989)k to RM(665)k. This improvement stems from new major contracts and a reduction in impairment loss on trade receivables compared to the previous year.
- Technology: This segment, though small in revenue (RM8k), continues to be a drag on overall profitability, with its pre-tax loss widening to RM(6,765)k. This is a strategic investment phase, incurring higher marketing and manpower costs for its MoneyX app and the newly launched MoneyX Biz platform.
Financial Health and Cash Flow
Looking at the balance sheet, HTECH’s financial position has seen some shifts:
As at 31 March 2025
Total Assets: RM149,655k
Total Equity: RM83,067k
Cash and Cash Equivalents: RM5,687k
Net Assets Per Share: RM0.04
As at 31 March 2024
Total Assets: RM157,461k
Total Equity: RM106,337k
Cash and Cash Equivalents: RM20,619k
Net Assets Per Share: RM0.05
Total assets and total equity both saw a decline, by 4.96% and 21.89% respectively, reflecting the full-year losses. Cash and cash equivalents also significantly decreased by 72.42%, indicating substantial cash outflows. However, it’s important to note that net cash used in operating activities improved, decreasing from RM15,228k to RM13,116k for the full year. Furthermore, net cash from financing activities saw a strong increase, reaching RM20,589k, suggesting active capital management.
Strategic Outlook and Potential Headwinds
HTECH is clearly undergoing a strategic transformation. The company acknowledges the cyclical nature of its traditional logistics and trading businesses, which are subject to supply and demand forces. However, it’s the technology segment where significant future potential, and current investment, lies.
The recent launch of MoneyX Biz in March 2025 is a strategic move to tap into the business owners and micro SMEs (MSMEs) market. This platform aims to provide solutions that streamline business operations and enhance cost efficiency, complementing the existing MoneyX app. A new revenue-sharing program has also been introduced, signaling a long-term monetization strategy.
Adding to the strategic shifts are several significant asset disposals announced post-reporting period:
- Disposal of leasehold industrial land in Pasir Gudang for RM16 million cash.
- Disposal of vacant freehold industrial land in Nilai for RM31.3 million, to be satisfied by the issuance of Widad Group Berhad shares.
- Disposal of a lease on a factory and office in Port Klang Free Zone for RM23.7 million cash.
These disposals, once completed, will significantly alter HTECH’s asset base and cash position, providing capital for future investments or to strengthen its balance sheet. This indicates a clear focus on optimizing asset utilization and potentially reallocating capital towards higher-growth areas, such as the technology segment.
Summary and
Hextar Technologies Solutions Berhad’s latest financial report is a mixed bag, yet it underscores a company actively working to redefine its future. The strong fourth-quarter performance, driven by its logistics and warehousing segments, demonstrates resilience and operational improvements in its core businesses. The warehousing segment, in particular, shows impressive growth potential following its new tenancy agreement.
However, the full-year results reflect the challenges faced in earlier quarters, compounded by the significant investment in the nascent technology segment. This segment, while strategically important for future growth, is currently a drag on profitability due to high development, marketing, and manpower costs. The company’s strategic asset disposals are a key element to watch, as they will provide substantial capital that can be deployed to further strengthen existing operations or accelerate growth in new ventures.
As the company navigates this transition, investors will likely be keen to see how the technology segment progresses towards monetization and how the capital from asset disposals is effectively utilized. The focus remains on sustainable growth across its diversified portfolio.
Key points to consider include:
- The continued high operating losses in the technology segment as it scales up and seeks monetization avenues.
- The cyclical nature and market conditions impacting the traditional trading business, requiring careful management of receivables.
- The successful execution and integration of proceeds from the announced significant asset disposals.
What are your thoughts on Hextar Technologies Solutions Berhad’s strategic direction? Do you believe their investments in the technology segment will yield significant returns in the long run? Share your perspectives in the comments below!
Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Always conduct your own thorough research and consult with a qualified financial advisor before making any investment decisions.
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