MULTI-USAGE HOLDINGS BERHAD Q3 2025 Latest Quarterly Report Analysis

Multi-Usage Holdings Berhad: A Strong Rebound in Q3 FY2025 Driven by Property Development

Hello fellow investors and market watchers!

Today, we’re diving into the latest financial performance of Multi-Usage Holdings Berhad for its third quarter ended 31 March 2025. After a challenging period, the company has delivered a truly impressive set of results, showcasing a significant turnaround in profitability and robust revenue growth. This report highlights not just a return to the black, but also a strategic focus on its core property development segment, backed by a healthy cash position. Let’s break down the key figures and what they mean for the company’s future.

Core Data Highlights: A Financial Rebound

Multi-Usage Holdings Berhad’s latest results paint a picture of strong recovery and growth. Let’s look at the numbers:

Current Quarter Performance (Q3 FY2025 vs Q3 FY2024)

The Group’s performance in the current quarter ending 31 March 2025 demonstrates a significant leap forward.

The substantial increase in revenue by RM2.430 million and the turnaround from a loss to a profit before tax of RM1.214 million are primarily attributed to the higher sale of completed properties within the property development segment. This is a clear indicator that the company’s efforts in monetizing its inventory are bearing fruit.

Cumulative Quarter Performance (9 Months Ended 31 March 2025 vs 9 Months Ended 31 March 2024)

The positive trend extends to the cumulative nine-month period, reinforcing the strength of the recovery.

For the nine months, revenue increased by RM3.687 million, and the Group swung from a loss of RM0.885 million to a profit before tax of RM2.578 million. This sustained growth underlines the effectiveness of their current business strategies.

Segmental Performance Breakdown

The property development segment is the undisputed star performer. For the current quarter, it generated RM3.206 million in revenue and RM1.327 million in profit before tax, a significant improvement from the previous year’s corresponding quarter. Similarly, for the cumulative nine months, property development revenue reached RM7.809 million with a profit before tax of RM2.812 million. This strong performance is directly linked to the higher sales of completed properties.

The contracting arm primarily provides intercompany construction services, and its revenue is eliminated upon consolidation. No significant change in its loss before tax was noted. The “Others” segment, comprising investment holding, trading, and inactive companies, recorded a small profit before tax for the cumulative period, mainly due to lower administrative expenses.

Financial Health and Cash Flow

The company’s balance sheet reflects a stable and improving financial position. Total assets have slightly increased to RM90,952k as at 31 March 2025 from RM88,427k as at 30 June 2024. More importantly, total equity also grew to RM87,999k from RM86,164k in the same period, leading to a healthy net assets per share of RM1.56 (up from RM1.53).

A key highlight is the cash flow statement. Net cash generated from operating activities for the nine months ended 31 March 2025 was a positive RM810k, a remarkable turnaround from a cash usage of RM(419)k in the prior year. This positive operational cash flow, coupled with strong investing activities, led to a net increase in cash and cash equivalents of RM2,237k for the period, bringing the total cash and cash equivalents to a robust RM24,512k. This strong cash position provides the company with significant flexibility for future growth and operations.

Risks and Prospects: Navigating the Future

While the current results are encouraging, it’s crucial to look ahead at the company’s strategies and potential challenges.

Forward-Looking Prospects

Multi-Usage Holdings Berhad is keenly focused on its core property development business in Machang Bubok, Bukit Mertajam. The Board and Management are committed to:

• Strategic Land Bank Management: Continuously monitoring property market conditions to plan launches effectively and avoid excessive inventory.
• Competitive Product Offerings: Maintaining competitiveness by offering reasonably priced, quality products that meet customer expectations.
• Monetizing Inventories: A strong emphasis on converting existing inventories into sales, which has clearly contributed to the recent positive results.
• New Project Launches: Commenced substructure works for two new apartment blocks (“The Fame”) with commercial lots at Taman Machang Bubok, and “TF 51,” with sales planned to launch by the first quarter of FY2026. This indicates a healthy pipeline for future revenue.
• Expansion Opportunities: Actively seeking new land acquisition and joint venture opportunities to expand its existing land bank and explore new business ventures that can contribute positively to the Group.

Potential Risks

As with any business, certain risks need to be monitored:

• Contingent Liabilities: The company is currently involved in several legal suits related to alleged services rendered for construction projects. While some of these cases have seen positive developments (e.g., settlement of RM220,000 for several suits after the reporting period), the financial impact of the remaining ongoing suits cannot be estimated with reasonable certainty at this time. Investors should keep an eye on updates regarding these litigations.
• Market Fluctuations: The property development sector is inherently exposed to market cycles, economic conditions, and regulatory changes. The company’s strategy of monitoring market conditions and planning launches accordingly aims to mitigate this.

It’s also worth noting the emphasis of matter in the audit report regarding the dissolution of a Special Purpose Vehicle (SPV) in 2022. However, the auditors explicitly stated that their opinion is *not modified* in respect of this matter, indicating it’s a historical accounting note rather than a current operational or financial red flag.

What Are Your Thoughts?

Multi-Usage Holdings Berhad’s latest report certainly provides a lot to consider. Do you think the company can maintain this growth momentum with its upcoming property launches? What are your views on their strategy moving forward? Share your thoughts in the comments section below!