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Mitrajaya Holdings Kicks Off FY2025 with Stellar Q1 Growth Driven by Construction Boom
Mitrajaya Holdings Berhad (Registration No. 199301013519), a diversified Malaysian conglomerate, has just released its interim financial statements for the first quarter ended 31 March 2025. This report paints a compelling picture of significant growth, primarily fueled by its robust construction division, setting an optimistic tone for the fiscal year ahead. While the company celebrates impressive top-line and bottom-line expansion, it also provides insights into its various business segments and future strategies.
Key Takeaway: Mitrajaya recorded a remarkable 141.1% surge in revenue and a staggering 1250% increase in profit before tax compared to the same period last year, largely propelled by strong performance in its core construction business.
Unpacking the Numbers: A Strong Start to FY2025
Mitrajaya’s first quarter results demonstrate a powerful rebound and growth trajectory. Let’s dive into the core financial figures that stood out:
Overall Financial Performance (Q1 2025 vs. Q1 2024)
Q1 FY2025
Revenue: RM131,408k
Profit Before Tax: RM11,786k
Profit Net of Tax: RM8,627k
Basic Earnings Per Share: 1.20 sen
Q1 FY2024
Revenue: RM54,493k
Profit Before Tax: RM873k
Profit Net of Tax: RM77k
Basic Earnings Per Share: 0.03 sen
The Group’s revenue surged by RM76.92 million, a substantial 141.1% increase, reaching RM131.41 million. This impressive top-line growth translated directly to the bottom line, with profit before tax soaring by RM10.91 million to RM11.79 million, a phenomenal 1250% jump compared to the RM0.87 million reported in the first quarter of 2024. This significant improvement was predominantly driven by the robust performance of the Construction division.
Segmental Deep Dive: Where the Growth Originated
A closer look at the individual business segments reveals the engines behind Mitrajaya’s strong quarter:
Construction Division: The Main Catalyst
The Construction division was the star performer, with revenue increasing by RM67.42 million (154.5%) from RM43.65 million to RM111.07 million in the current quarter. Consequently, this division reported a profit before tax of RM9.61 million, a significant leap from RM0.96 million in the first quarter of 2024. This improved financial performance is directly attributed to strong contributions from ongoing construction projects.
Property Development Division: Steady Progress
The Property Development division also contributed positively, with revenue of RM18.57 million in the current quarter, an increase of RM9.08 million (95.7%) compared to RM9.49 million in the first quarter of 2024. Its profit before tax rose by RM1.67 million (134.7%) to RM2.91 million from RM1.24 million in the preceding year’s corresponding quarter. This growth was primarily driven by the ongoing project at Bukit Sentosa and contributions from the completed Kiara 9 Residency project.
South Africa Investment: Reducing Losses
The South Africa Investment division saw its revenue increase by RM0.40 million (30.8%) to RM1.70 million. Encouragingly, this division reported a lower loss before tax of RM0.22 million in the current quarter, an improvement from the RM0.38 million loss in the first quarter of 2024.
Plantation Division: Investing for Future Yields
The Plantation division, primarily focused on durian cultivation, reported a loss before tax of RM0.45 million, an increase of RM0.05 million (12.5%) compared to a loss of RM0.40 million in the first quarter of 2024. This is due to development costs for durian plantation that cannot be capitalised within the current accounting context, indicating ongoing investment in future revenue streams.
Sequential Performance (Q1 2025 vs. Q4 2024)
While the year-on-year growth is impressive, it’s also worth noting the sequential performance. Compared to the preceding quarter (Q4 2024), the Group’s revenue decreased by RM24.35 million (15.6%) to RM131.41 million from RM155.76 million. Similarly, profit before tax decreased by RM3.24 million (21.6%) to RM11.79 million from RM15.03 million. This sequential decline was primarily attributable to slower work progress in the Construction division during the current first quarter compared to the preceding quarter.
Financial Health Snapshot (As at 31 March 2025)
Mitrajaya’s balance sheet reflects a healthy financial position:
| Indicator | 31 March 2025 (RM’000) | 31 December 2024 (RM’000) |
|---|---|---|
| Total Assets | 1,095,435 | 1,044,870 |
| Total Equity | 791,699 | 785,543 |
| Net Assets Per Share (RM) | 1.03 | 1.02 |
| Net Operating Cash Flows | 13,340 | (8,119) (Q1 2024) |
| Cash & Cash Equivalents | 10,488 | 18,272 (Q1 2024) |
The Group’s total assets increased, indicating continued investment and growth. Net operating cash flows showed a significant positive turnaround, moving from a deficit in the previous corresponding period to a healthy surplus, which is crucial for sustainable operations. While cash and cash equivalents are lower compared to the same period last year, the improved operating cash flow suggests better internal cash generation.
Navigating the Future: Risks, Prospects, and Strategies
Mitrajaya’s management remains optimistic about the future, outlining clear strategies and acknowledging potential challenges across its diverse portfolio.
Bright Prospects Ahead
- Construction Division: The division boasts an outstanding order book of RM959.79 million, inclusive of a new contract secured in May 2025. This robust pipeline is expected to drive substantial positive contributions throughout 2025.
- Property Development Division: The ‘Amber’ project in Bukit Sentosa continues to see remarkable demand, with a 97% take-up rate across its first three phases. Phase 4, launched in February 2025, has already achieved a 40% take-up rate. Additionally, the launch of Phase 1 of the new residential project ‘Amora Residensi @ Warisan 9’ in Kota Warisan, with an estimated gross development value of RM257 million, signals future growth.
- South Africa Investment: Despite a slow property market, the company anticipates higher revenue recognition this year following the recent completion of Extension 105, which includes sales bookings secured in 2024 that are yet to be recognised. The golf operations continue to be a profitable segment due to its excellent condition and value proposition.
- Plantation Division: The durian plantation is a long-term investment, with positive contributions expected to materialise in the next 1 to 2 years as the trees begin to fruit.
Acknowledging the Headwinds
While the outlook is generally positive, the report highlights areas requiring careful management:
- Sequential Slowdown in Construction: The Q1 2025 results show a sequential decrease in revenue and profit before tax compared to Q4 2024, primarily due to slower work progress in the Construction division. This suggests that project timelines and execution efficiency will be key to maintaining consistent performance.
- South Africa Property Market: Property sales in South Africa remain slow. Lower disposable income and savings due to rising costs and inflation may continue to dampen demand for residential property in 2025, posing ongoing challenges for this segment.
- Plantation Development Costs: The durian plantation continues to incur development costs that are not yet capitalisable, contributing to losses in this division. While a long-term investment, it will continue to be a drag on profits until the trees mature and yield fruit.
Summary and Outlook
Mitrajaya Holdings Berhad has delivered a robust first quarter for FY2025, marked by exceptional revenue and profit growth driven primarily by its core Construction division. The Property Development segment also showed strong progress with successful project take-ups and new launches. While the company faces ongoing challenges in the South African property market and initial development costs in its Plantation division, its strong construction order book and strategic new property developments position it for continued growth.
The management’s proactive approach in securing new contracts and launching new projects, coupled with the anticipated future contributions from the Plantation division, paints a cautiously optimistic picture. The slight sequential slowdown in construction activity from the previous quarter will be an area to watch, but the overall trajectory remains positive.
- Significant year-on-year revenue and profit growth, largely due to the Construction division.
- Healthy order book for Construction and strong demand for Property Development projects.
- Challenges in the South African property market persist, but the golf operations remain profitable.
- Plantation division is a long-term investment, currently incurring non-capitalisable costs.
Final Thoughts: Building on a Strong Foundation
Mitrajaya’s Q1 FY2025 results underscore the company’s resilience and strategic focus on its core competencies while nurturing diversified ventures. The remarkable performance in construction and steady progress in property development highlight its operational strengths. However, as with any diversified group, managing the varied market dynamics of each segment will be crucial.
Given their diversified approach and strong construction pipeline, do you believe Mitrajaya can sustain this impressive growth trajectory and turn around its newer ventures in the coming years? Share your thoughts in the comments below!
