CREST GROUP BERHAD: Navigating Q1 2025 Amidst Market Shifts
Ever wondered how a company navigates its first few quarters after a major listing? Today, we’re diving into CREST GROUP BERHAD’s latest financial update – their Unaudited Interim Financial Report for the First Quarter ended 31 March 2025. For Malaysian retail investors, understanding these reports is key to spotting opportunities and understanding a company’s trajectory.
This report presents a mixed picture: while revenue saw a dip compared to the immediate preceding quarter due to prevailing market conditions, the Group demonstrated resilience with an improved gross profit margin. More importantly, the long-term outlook remains optimistic, buoyed by robust industry growth and significant government support. Let’s unpack the numbers and strategic moves that define CREST GROUP BERHAD’s journey.
Navigating Q1 2025: A Closer Look at the Numbers
CREST GROUP BERHAD, a relatively new player on the ACE Market, is reporting its first quarter results for the financial year 2025. It’s important to note that as this is one of their initial interim reports following their listing, there are no comparative figures for the corresponding quarter of the preceding year (Q1 2024). Therefore, our analysis will focus on comparing the current quarter’s performance against the immediate preceding quarter (Q4 2024) to provide a clearer picture of recent trends.
Q1 2025 (3 months ended 31 March 2025)
Revenue: RM32.71 million
Gross Profit (GP): RM8.85 million
Profit Before Tax (PBT): RM2.47 million
Profit After Tax (PAT): RM1.72 million
Earnings Per Share (EPS): 0.20 sen
Gross Profit Margin: 26.9%
Q4 2024 (3 months ended 31 December 2024)
Revenue: RM54.57 million
Gross Profit (GP): RM11.53 million
Profit Before Tax (PBT): RM3.28 million
Profit After Tax (PAT): RM3.09 million
Earnings Per Share: Not explicitly reported for Q4 2024
Gross Profit Margin: 21.1%
The Group’s revenue for Q1 2025 stood at RM32.71 million, a notable decrease from the RM54.57 million recorded in the immediate preceding quarter (Q4 2024). This 40.06% decline was primarily attributed to project delays and a reduction in capital expenditure by customers, largely influenced by ongoing geopolitical uncertainties and a slowdown in the semiconductor industry, a key sector for CREST GROUP BERHAD.
Despite the revenue contraction, the Group managed to improve its Gross Profit (GP) margin significantly, rising from 21.1% in Q4 2024 to 26.9% in Q1 2025. This improvement was driven by a more favourable sales mix, particularly from advanced imaging equipment, and the absence of certain low-margin sales of advanced analytical and testing equipment that occurred in the previous quarter. This indicates a positive shift in profitability per sale, even with lower overall volume.
Consequently, Profit Before Tax (PBT) decreased by RM0.81 million, from RM3.28 million in Q4 2024 to RM2.47 million in Q1 2025. Similarly, Profit After Tax (PAT) also saw a decline, settling at RM1.72 million for the quarter. Basic and diluted earnings per share for the current quarter were 0.20 sen.
Where the Revenue Comes From: Segmental Breakdown
In Q1 2025, the lion’s share of CREST GROUP BERHAD’s revenue came from its core business of providing imaging, analytical, and test solutions, contributing RM26.50 million (81.03%). The remaining RM6.21 million (18.97%) was generated from after-sales services. Within the solutions segment, the sale of advanced analytical and testing equipment was the largest contributor at RM8.7 million (26.6%), followed by advanced imaging equipment at RM6.7 million (20.5%), and optical and portable equipment at RM6.1 million (18.7%).
A Look at the Balance Sheet and Cash Flow
Understanding a company’s financial health goes beyond just profit. Let’s examine CREST GROUP BERHAD’s balance sheet and cash flow as of 31 March 2025, compared to 31 December 2024:
| Category | 31 March 2025 (RM’000) | 31 December 2024 (RM’000) | Change (RM’000) | Change (%) |
|---|---|---|---|---|
| Total Assets | 143,540 | 155,336 | (11,796) | -7.6% |
| Total Equity | 110,243 | 108,872 | 1,371 | 1.3% |
| Total Liabilities | 33,297 | 46,464 | (13,167) | -28.3% |
| Cash & Short-Term Deposits | 73,326 | 78,657 | (5,331) | -6.8% |
The Group’s total assets decreased by 7.6%, primarily due to a reduction in trade and other receivables and cash and short-term deposits. However, total equity saw a healthy increase of 1.3%, reaching RM110.24 million, reflecting the profit generated during the period. Total liabilities significantly decreased by 28.3%, largely due to a reduction in trade and other payables and current tax liabilities.
From a cash flow perspective, the Group experienced a net decrease in cash and cash equivalents of RM5.39 million during the quarter. This was driven by net cash used in operating activities (RM4.37 million), investing activities (RM0.53 million), and financing activities (RM0.49 million). The operating cash outflow was primarily due to changes in working capital, particularly a decrease in trade and other payables and an increase in inventories, partially offset by an increase in trade and other receivables.
Utilisation of IPO Proceeds
As of 20 May 2025, CREST GROUP BERHAD has made progress in utilising its IPO proceeds of RM45.75 million. Approximately RM9.42 million has been utilised, with the largest portion going towards estimated listing expenses, which are now fully utilised. Funds are also being deployed for setting up a new centralised headquarters, business expansion, and purchasing additional demonstration equipment, all within their planned 36-month timeframe.
Looking Ahead: Opportunities and Challenges
CREST GROUP BERHAD remains optimistic about its future, underpinned by several key drivers:
- Robust Industry Growth: Malaysia’s imaging, analysis, and testing industry grew significantly from RM4.33 billion in 2020 to RM7.25 billion in 2023, achieving a compound annual growth rate (CAGR) of 18.72%. This growth is expected to continue, fueled by increasing demand across diverse sectors like electrical and electronics (E&E), semiconductors, automotive, aerospace, healthcare, life sciences, and material sciences.
- Government Support: Proactive government initiatives, including Budget 2025 allocations (RM1 billion from Khazanah for the semiconductor ecosystem, RM500 million in GLIC strategic investments) and the National Semiconductor Strategy (NSS) aiming for RM500 billion in investments, are set to significantly boost demand for high-precision testing technologies. The GEAR-uP initiative, mobilising RM120 billion in domestic direct investments (DDI) from Government-Linked Investment Companies (GLICs), further amplifies this potential.
- AI Integration: The global adoption of Artificial Intelligence (AI) is driving increased investment in high-tech manufacturing, enhancing operational efficiency and precision. This trend, particularly in key markets like China, Singapore, and Thailand where the Group operates, is expected to fuel demand for advanced imaging, analysis, and testing capabilities.
- Regional Expansion: CREST GROUP BERHAD is actively expanding its presence in Vietnam while strengthening operations in China and Thailand, aiming to enhance market share and operational resilience across Southeast and East Asia.
Despite these tailwinds, the Group acknowledges the challenges faced in Q1, namely ongoing geopolitical uncertainties and a marked slowdown in the semiconductor industry, which led to project delays and reduced customer capital expenditure. However, the Group remains confident in its outlook for sustainable growth, barring unforeseen circumstances.
Shareholder Returns: A Glimpse of Confidence
While no dividend was paid by the Company during the current financial quarter ended 31 March 2025, CREST GROUP BERHAD made a significant announcement post-quarter end. On 17 April 2025, the Company declared an interim single-tier tax-exempt dividend of 0.38 sen per Share, amounting to approximately RM3.29 million, for the financial year ending 31 December 2025. This dividend is payable on 13 June 2025. This declaration, made shortly after the quarter’s close, signals the Board’s confidence in the Group’s ongoing profitability and commitment to returning value to shareholders.
Summary and
CREST GROUP BERHAD’s Q1 2025 performance reflects a quarter of strategic navigation amid market headwinds. While revenue saw a quarter-on-quarter dip due to project delays and a semiconductor industry slowdown, the Group demonstrated resilience with an improved gross profit margin, signaling efficient cost management and a favorable sales mix. The company’s focus on high-growth industries like E&E, healthcare, and material sciences, coupled with robust government support for the semiconductor ecosystem, positions it well for future growth.
The commitment to regional expansion into Vietnam, China, and Thailand further underscores CREST GROUP BERHAD’s long-term vision to enhance market share and operational resilience. The recent declaration of an interim dividend post-quarter end also serves as a positive indicator of the Group’s confidence in its financial health and future prospects.
However, investors should remain mindful of the prevailing market conditions and potential risks:
- Ongoing geopolitical uncertainties that could impact global supply chains and customer capital expenditure.
- A continued slowdown in the semiconductor industry, which is a significant end-user market for the Group.
- Potential for further project delays, affecting revenue recognition and operational efficiency.
Overall, CREST GROUP BERHAD appears to be strategically aligning its operations with long-term industry trends and government initiatives, which could mitigate short-term challenges and pave the way for sustained growth. The Group’s proactive measures in managing its product mix and expanding regionally are key factors to watch.
What are your thoughts on CREST GROUP BERHAD’s Q1 performance and its strategic direction? Do you think the company can maintain its improved gross profit margins and capitalize on the strong industry tailwinds in the coming quarters?
Share your views in the comments section below!
For more insights into Malaysian companies and market trends, be sure to check out our other related articles on [Link to Related Article 1] and [Link to Related Article 2].
