Greetings, fellow investors and market enthusiasts! Today, we’re diving into the latest financial performance of ABLEGROUP BERHAD, as revealed in their unaudited condensed consolidated financial statements for the quarter ended 31 March 2025 (1Q25). This report offers a mixed bag of results, showcasing both challenges and pockets of resilience, particularly with new contract wins on the horizon. Let’s unpack the numbers and see what’s brewing for ABLEGROUP.
While the Group experienced a dip in revenue compared to the same period last year, it successfully swung back to profitability from a loss in the immediate preceding quarter. This highlights the company’s ability to adapt and improve its margins even amidst a fluctuating market. Furthermore, the announcement of new contracts provides a much-needed boost to its future prospects.
Core Data Highlights: Navigating the Quarter
Quarter-on-Quarter Performance: 1Q25 vs. 1Q24
Comparing the first quarter of 2025 with the same period last year, ABLEGROUP BERHAD faced headwinds, primarily reflected in a decrease in its top-line revenue and profitability.
1Q25 (31 Mar 2025)
Revenue: RM934,000
Profit Before Tax: RM24,000
Profit After Tax: RM24,000
Earnings Per Share: 0.009 sen
1Q24 (31 Mar 2024)
Revenue: RM1,083,000
Profit Before Tax: RM46,000
Profit After Tax: RM46,000
Earnings Per Share: 0.017 sen
The Group’s revenue for 1Q25 stood at RM0.934 million, marking a 14% decrease from RM1.083 million in 1Q24. This decline was largely attributed to the completion of several supply and installation contracts for projects like a hotel, cinemas, and a private pavilion. However, this was partially cushioned by increased retail sales and progress billings from four ongoing stoneworks jobs, totaling RM0.740 million. In line with the lower revenue, net profit for 1Q25 also saw a 48% reduction, settling at RM0.024 million compared to RM0.046 million in 1Q24.
Sequential Quarter Performance: 1Q25 vs. 4Q24
A more encouraging picture emerges when we compare the current quarter’s performance against the immediate preceding quarter (4Q24). Despite a slight revenue dip, ABLEGROUP managed a significant turnaround in profitability.
1Q25 (31 Mar 2025)
Revenue: RM934,000
Operating Profit: RM2,000
Profit Before Tax: RM24,000
Profit After Tax: RM24,000
Earnings Per Share: 0.009 sen
4Q24 (31 Dec 2024)
Revenue: RM1,090,000
Operating Loss: (RM87,000)
Loss Before Tax: (RM58,000)
Loss After Tax: (RM58,000)
Loss Per Share: (0.022 sen)
Revenue in 1Q25 was RM0.934 million, a 14% decrease from RM1.090 million in 4Q24, primarily due to fewer jobs undertaken and lower retail sales. However, the Group successfully transitioned from a net loss of RM0.058 million in 4Q24 to a net profit of RM0.024 million in 1Q25. This impressive swing back to profitability is mainly attributable to higher profit margins achieved in the current quarter.
Segmental Performance: A Closer Look
ABLEGROUP operates across three key segments: Building Material, Property Development, and Investment Holding. Understanding their individual contributions helps to dissect the overall performance.
| Segment | Revenue (1Q25, RM’000) | Profit/(Loss) After Tax (1Q25, RM’000) | Total Assets (1Q25, RM’000) |
|---|---|---|---|
| Building Material | 934 | 118 | 8,746 |
| Property Development | – | 35 | 36,431 |
| Investment Holding | – | (129) | 41,950 |
| Group Total | 934 | 24 | 45,204 |
The Building Material segment remains the sole revenue generator, contributing RM0.934 million and a profit of RM0.118 million. The Property Development segment, despite no reported revenue for the quarter, contributed RM0.035 million to the profit. However, the Investment Holding segment continued to record a significant loss of RM0.129 million, offsetting much of the positive contributions from the other segments.
Financial Health: Balance Sheet and Cash Flow
As of 31 March 2025, ABLEGROUP’s total assets stood at RM45.204 million, marginally lower than RM45.239 million at 31 December 2024. Total equity increased slightly to RM43.590 million from RM43.566 million, driven by retained earnings. The company’s cash and cash balances saw a healthy increase to RM1.054 million from RM0.443 million at the end of the previous financial year, indicating improved liquidity.
From a cash flow perspective, net cash generated from operating activities for 1Q25 was RM0.152 million, lower than RM0.224 million in 1Q24. However, the net increase in cash and cash equivalents for the quarter was RM0.115 million, contributing to a strong ending cash and cash equivalents balance of RM4.623 million, up from RM4.508 million at the beginning of the year.
Risks and Prospects: Looking Ahead
Optimistic Outlook with New Contracts
ABLEGROUP is strategically positioning itself for future growth. The Group recently secured two new contracts valued at a combined RM1.074 million, specifically for the supply and installation of stoneworks for business premises. This brings their outstanding order book to a robust RM1.209 million. Management expresses confidence in securing more jobs, which is crucial for contributing to earnings for the remainder of the year.
Navigating the Challenges
While the new contracts are positive, the Group faces ongoing challenges. The decline in revenue year-on-year and quarter-on-quarter suggests a need for consistent project pipeline and sales growth. The significant and persistent losses from the Investment Holding segment continue to be a drag on overall profitability, requiring strategic evaluation. ABLEGROUP’s primary reliance on the Building Material segment for revenue means its performance is closely tied to the construction and property development sectors, which can be sensitive to economic fluctuations.
Summary and Outlook
ABLEGROUP BERHAD’s 1Q25 results present a mixed, yet cautiously optimistic, picture. While the Group experienced a year-on-year decline in revenue and profit, its ability to swing back to profitability from a loss-making preceding quarter demonstrates operational agility and improved margin management. The new contract wins are a positive indicator, bolstering the order book and providing a clearer path for future revenue generation.
However, the Group must continue to address the consistent losses from its Investment Holding segment and ensure a steady stream of projects to maintain and grow its top line. The focus on securing more jobs for its core Building Material segment will be key to sustaining this momentum.
Key points to monitor moving forward:
- The successful execution and billing of the newly secured contracts and their contribution to revenue.
- The Group’s progress in securing additional projects to further expand its order book.
- Any strategic initiatives or improvements within the Investment Holding segment to mitigate its impact on overall profitability.
- The ability of the Building Material segment to maintain healthy profit margins amidst potentially competitive market conditions.
ABLEGROUP BERHAD is clearly navigating a dynamic market environment. The positive swing to profit and the new contract wins are encouraging signs, but consistent execution and strategic management of all business segments will be crucial for sustained growth. Can ABLEGROUP sustain this positive momentum and grow its order book further in the coming quarters?
What are your thoughts on ABLEGROUP’s latest performance? Share your views in the comments section below!
