ACME HOLDINGS BERHAD: A Deep Dive into FY2025 Performance – Growth Amidst Shifting Tides?
As the curtains close on another financial year, Malaysian investors are keenly reviewing the latest reports from listed companies. Today, we’re putting ACME HOLDINGS BERHAD under the microscope, analyzing their unaudited interim financial report for the fourth quarter ended 31 March 2025. This report reveals a company that has navigated a dynamic environment, achieving impressive full-year revenue growth while facing profitability pressures in the latest quarter.
Key Takeaways from the Report:
- Strong full-year revenue growth, up over 35%.
- Fourth-quarter profit before tax sees a significant decline.
- Property development remains the core driver, with high take-up rates on new projects.
- Strategic long-term joint ventures promise substantial future Gross Development Value (GDV).
- No dividends declared for the interim period.
Unpacking the Numbers: Q4 and Full-Year Performance
Fourth Quarter (Q4 FY2025) Performance: A Mixed Bag
ACME HOLDINGS BERHAD’s final quarter of the financial year presented a mixed picture. While the property development segment continued to generate substantial revenue, the overall group saw a dip in both top-line and bottom-line figures compared to the same period last year. Let’s break it down:
Q4 FY2025
Revenue: RM19,077k
Profit Before Tax: RM1,415k
Net Profit: RM1,183k
Basic Earnings Per Share: 0.33 sen
Q4 FY2024
Revenue: RM20,479k
Profit Before Tax: RM3,128k
Net Profit: RM2,413k
Basic Earnings Per Share: 0.67 sen
As you can see, revenue for the quarter decreased by approximately 6.8% year-on-year. More notably, profit before tax plummeted by about 54.8%, and net profit saw a similar decline of around 51.0%. This significant drop in profitability for the quarter is a point to watch, despite strong full-year performance.
Full-Year (FY2025) Performance: Solid Revenue Growth
Looking at the entire financial year, the picture is more robust, largely driven by the company’s property development activities. ACME Holdings managed to grow its revenue significantly, although profit metrics experienced a contraction.
| Metric | FY2025 (RM’000) | FY2024 (RM’000) | Change (%) |
|---|---|---|---|
| Revenue | 82,602 | 61,086 | +35.2% |
| Profit Before Tax | 7,268 | 9,167 | -20.8% |
| Net Profit | 5,128 | 6,842 | -25.0% |
| Basic EPS (sen) | 1.43 | 1.91 | -25.2% |
The 35.2% surge in full-year revenue is a testament to the company’s successful project launches and sales. However, the decline in profit before tax and net profit suggests rising operational costs, higher finance costs, or possibly lower profit margins on some projects. Finance costs, for instance, increased substantially from RM300k in FY2024 to RM908k in FY2025, impacting the bottom line.
Business Unit Spotlight: Property Development Powering Growth
The Property Development Division continues to be the bedrock of ACME Holdings’ operations. For the full financial year, this segment recorded an impressive revenue of RM81.42 million, a significant jump from RM59.89 million in the previous year. This growth was primarily fueled by new project launches like Marina Residence and Mandarin Residence.
Despite higher revenue, the division’s profit before tax for the year actually saw a decrease, moving from RM8.73 million in FY2024 to RM7.44 million in FY2025. This indicates that while sales volume was up, the profitability per project or overall cost management might have faced headwinds in the current year.
Financial Health: A Shifting Landscape
ACME Holdings’ balance sheet as of 31 March 2025 shows a substantial increase in total equity, rising from RM113.49 million to RM152.51 million. This increase is significantly driven by the acquisition of a subsidiary, Pedoman Canggih Sdn. Bhd., which introduced RM33.89 million in non-controlling interests and a substantial increase in investment properties from RM5.71 million to RM67.43 million.
However, the company’s borrowings have also seen a notable increase, from RM8.66 million last year to RM20.32 million. This indicates a higher leverage, which contributes to the increased finance costs observed in the income statement.
Cash and cash equivalents stood at RM6.88 million at the end of the period, down from RM7.92 million a year ago. The cash flow statement highlights that while net cash from operating activities was positive (RM11.90 million), significant cash was used in investing activities, primarily due to the acquisition of the new subsidiary.
Prospects and Potential Challenges Ahead
ACME Holdings has a clear vision for growth, anchored by its successful property development projects and ambitious new ventures.
Bright Prospects on the Horizon:
- Marina Residence: Phase 1 has achieved an impressive 91% take-up rate, leading to the successful launch of Phase 2 (GDV ~RM103.43 million) which already boasts a 70% take-up rate.
- Mandarin Residence: This affordable housing project (GDV ~RM243.44 million) has seen strong demand with a 92% take-up rate.
- Strategic Joint Ventures:
- A major JV with PERKESO for a high-rise development in Jalan Kia Peng, Kuala Lumpur, with an estimated GDV of approximately RM1.5 billion.
- Another significant JV in Balik Pulau, Penang, covering 178.34 acres for a multi-phased integrated development, projected to generate a GDV of approximately RM1.4 billion.
These large-scale joint venture projects are expected to be significant long-term contributors to the Group’s revenue and profitability, providing a sustainable growth pipeline for the mid to long-term.
Challenges to Monitor:
Despite the promising pipeline, the recent quarter’s performance and the overall financial year’s profitability dip highlight areas that warrant attention. The increase in finance costs due to higher borrowings could continue to weigh on earnings. The property market, while showing signs of recovery, can be susceptible to economic slowdowns, rising interest rates, and evolving consumer sentiment. Managing project costs effectively to maintain healthy margins will be crucial, especially for large-scale developments.
Summary and
ACME HOLDINGS BERHAD’s latest financial report paints a picture of a company in transition and growth. The strong full-year revenue performance, driven by successful property development projects, underscores its operational capabilities. The strategic acquisition and the initiation of large-scale joint ventures signal a robust long-term growth trajectory, promising significant Gross Development Value contributions in the coming years.
However, the notable decline in profitability during the fourth quarter and for the full financial year, despite higher revenue, indicates challenges in managing costs and finance expenses. Investors should consider these factors when evaluating the company’s short-term performance versus its long-term potential.
Key points to monitor moving forward include:
- The company’s ability to maintain or improve profit margins on its property development projects.
- The impact of increasing finance costs on overall profitability.
- The progress and successful execution of the newly announced large-scale joint venture projects.
- Overall market conditions in the Malaysian property sector.
Your Thoughts?
ACME Holdings is clearly positioning itself for significant future growth with its ambitious property development pipeline. But can it translate this top-line expansion into sustainable bottom-line growth in the quarters to come?
What are your thoughts on ACME Holdings’ latest performance and its future prospects? Do you believe the new joint ventures will successfully offset the recent profitability pressures?
Share your insights in the comments section below! Let’s discuss.
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