WAJA KONSORTIUM BERHAD Q3 2025 Latest Quarterly Report Analysis

Malaysian investors, it’s time to delve into the latest financial performance of WAJA KONSORTIUM BERHAD (WAJA), a company primarily involved in general construction and ICT services. Their third-quarter results for the financial period ending 31 March 2025 present a mixed picture, showcasing both operational resilience and significant challenges.

While the quarter saw a notable decrease in revenue compared to the same period last year, the company managed to achieve an increase in its cumulative profit after tax for the nine-month period. However, a crucial aspect for investors to note is WAJA’s ongoing status as an affected listed issuer under Guidance Note 3 (GN3) of Bursa Malaysia’s Listing Requirements. This requires the company to submit a regularisation plan, a key factor that will shape its future trajectory.

Q3 FY2025: A Snapshot of Performance

WAJA’s third quarter (Q3 FY2025) results, ending 31 March 2025, show a decline in key financial metrics when compared to the corresponding quarter last year (Q3 FY2024). This was primarily attributed to slower progress in construction activities.

Revenue for the quarter saw a 44% decrease, dropping from RM10.29 million to RM5.76 million. Consequently, Profit Before Tax fell by 38.9%, and Profit After Tax by 44.9%. More strikingly, the profit attributable to owners of the company saw an 86% plunge, resulting in Basic Earnings Per Share decreasing from 0.06 sen to 0.01 sen.

Year-to-Date Performance: A Closer Look

For the nine-month financial period ended 31 March 2025 (9M FY2025), WAJA’s cumulative performance also reflects a revenue contraction but a positive shift in overall profit after tax.

While cumulative revenue decreased by 48.8% to RM15.09 million, the Profit After Tax for the nine-month period actually increased by 4.3% to RM2.93 million. This seemingly contradictory trend is mainly attributed to a higher profit generated from the general construction segment for the period. However, the profit attributable to owners saw a significant 77% decrease, and Basic EPS followed suit with a 75% drop.

Sequential Quarter Momentum: Signs of Rebound

Comparing the current quarter (Q3 FY2025) with the immediate preceding quarter (Q2 FY2025), WAJA demonstrated an encouraging sequential improvement in profitability, despite a marginal increase in revenue.

Revenue saw a slight increase of 0.3%. More importantly, Operating Profit surged by 77.1%, and Profit Before Tax by 77.4%. Profit After Tax increased by 28.8%. The most dramatic improvement was seen in profit attributable to owners, which soared by an astonishing 1780% from RM5k to RM94k. This rebound was primarily driven by increased revenue from the general construction segment due to ongoing works for the Solaris Tebrau Project and the commencement of planning and design works for the Collaboration Project. Additionally, a higher gross profit margin from the reversal of overcharged mechanical and electrical works for the Intan Medical Centre Sdn Bhd project contributed to this positive sequential performance.

Segmental Contributions

For the nine months ended 31 March 2025, WAJA’s performance was largely driven by its core segments:

The General Construction segment remains the powerhouse, contributing the bulk of the revenue and profit. The ICT Services segment also showed positive contributions. The “Investment Holding and Others” segment, however, recorded a loss, offsetting some of the gains from the core businesses.

Future Prospects: Projects and Growth Areas

WAJA is actively pursuing new projects to bolster its future revenue and profitability:

• Construction Division: The Solaris Tebrau Project, which commenced piling groundwork, is expected to see structural works begin in FY2026. Furthermore, the Collaboration Project for a mixed residential and commercial development in Klang has begun its planning and design phases. These projects are anticipated to be significant contributors to the Group’s financials.
• ICT Division: A notable RM2.88 million purchase order for a Hospital Information System for a government agency signals growth in the digital healthcare sector, a key area of expansion for the ICT division.

Navigating the Headwinds: Key Challenges

Despite the operational progress, WAJA faces a challenging environment:

• Construction Industry Headwinds: The construction sector continues to grapple with labour shortages and escalating costs for materials and labour. These factors could potentially lead to delays or deferments of new project launches, impacting future tender opportunities. The Group acknowledges these challenges and states it will implement necessary mitigation measures.
• GN3 Status: A significant concern for investors is WAJA’s classification as an affected listed issuer under Bursa Malaysia’s GN3. The company triggered this status on 10 October 2023 and is required to submit a regularisation plan. While an initial extension was granted, the company’s application for a waiver from complying with Rule 8.04(3)(a) was rejected on 20 May 2025. However, Bursa Securities has granted a further six-month extension until 7 October 2025 for WAJA to submit its regularisation plan. This regulatory compliance remains a critical hurdle for the company.

WAJA is at a pivotal juncture, balancing operational progress with significant regulatory hurdles. The coming months will be crucial in determining its path forward.

What are your thoughts on WAJA’s ability to navigate its GN3 status while pursuing these new projects? Share your insights in the comments below!