Saliran Group’s Inaugural Post-Listing Quarter: A Solid Start Amidst Strategic Expansion
Greetings, fellow investors! Today, we’re diving into the first-ever quarterly financial results from Saliran Group Berhad, a name that recently joined the ACE Market of Bursa Malaysia on March 13, 2025. As a new entrant to the public market, their Q1 FY2025 report offers a crucial first look at their performance as a listed entity.
The report highlights a robust start, with the company recording RM95.0 million in revenue and a net profit of RM2.6 million. While these figures mark their debut performance, they signal a positive trajectory and reflect the resilience of their established business model. Let’s unpack the details and see what this means for Saliran’s journey ahead.
Core Financial Highlights: A Closer Look at Q1 FY2025
Saliran Group’s financial performance for the first quarter ended 31 March 2025 (Q1 FY2025) provides key insights into their operational strength. Here’s a breakdown of the headline figures:
Key Financial Figures (Q1 FY2025)
- Revenue: RM95.0 million
- Profit Before Tax (PBT): RM4.4 million
- Normalised PBT (excluding one-off listing expenses): RM5.1 million
- Profit After Tax (PAT): RM2.6 million
- Basic Earnings Per Share (EPS): 0.69 sen (based on 382.9 million enlarged issued shares)
It’s important to note that the company incurred RM0.7 million in one-off listing expenses during the quarter. Excluding these, their underlying profitability would have been higher, demonstrating a stronger operational performance.
Quarter-on-Quarter (QoQ) Performance Overview
Since Saliran Group was only listed in March 2025, there are no comparative year-on-year figures available. However, we can compare their performance against the immediate preceding quarter (Q4 FY2024) to understand recent trends:
Q1 FY2025
Revenue: RM95.0 million
PAT: RM2.6 million
Q4 FY2024 (Preceding Quarter)
Revenue: RM95.6 million
PAT: RM3.7 million
On a quarter-on-quarter basis, revenue saw a slight decrease from RM95.6 million in Q4 FY2024 to RM95.0 million in Q1 FY2025. Similarly, PAT declined from RM3.7 million to RM2.6 million. This decline in PAT is primarily attributed to the aforementioned one-off listing expenses incurred during Q1 FY2025.
Business Unit Performance: Driving Growth
The Group’s strong performance was primarily driven by its core supply and distribution segment, which continues to be the backbone of its operations. This segment alone contributed RM93.9 million, accounting for a significant 98.8% of total revenue. The remaining RM1.1 million was generated from their manufacturing segment.
Geographically, Malaysia remains the largest revenue contributor, generating RM68.8 million or 72.5% of total sales for the quarter, underscoring their strong domestic market presence. Regional markets also played a significant role, reflecting their established footprint beyond Malaysia.
Financial Status: IPO Proceeds Utilization
Following its IPO, Saliran Group raised RM21.7 million. As at 31 March 2025, the Group has utilized RM5.2 million of these proceeds. These funds are earmarked for strategic expansion plans, including the establishment of a sales office in Indonesia and the purchase of new machinery and delivery trucks, which are crucial for enhancing their operational capabilities and market reach.
Risks and Prospects: Navigating the Future
Mr. Liaw Choon Wei, Managing Director of Saliran Group Berhad, expressed satisfaction with the solid financial performance in their first reporting quarter as a listed entity. He emphasized the resilience of their business model and the continued trust from customers across Malaysia and the region. The company plans to leverage its co-owned brand THF to strengthen market positioning, improve delivery capabilities, and capture further growth in high-potential markets like Indonesia.
Despite this optimism, the management remains cautiously optimistic. They acknowledge the persistent global macroeconomic uncertainties and foreign exchange fluctuations as potential headwinds. To mitigate these risks and support long-term sustainable growth, Saliran is focused on maintaining disciplined cost management, expanding its delivery fleet, and enhancing operational efficiencies.
Summary and
Saliran Group Berhad has delivered a commendable set of inaugural quarterly results, showcasing a strong core business in supply and distribution. The company’s ability to generate significant revenue in its first quarter post-listing, despite one-off expenses, speaks to its operational strength and market demand for its products.
Their strategic focus on expanding into high-potential regional markets like Indonesia, coupled with ongoing investments in operational efficiency and delivery capabilities, positions them well for future growth. The utilization of IPO proceeds for these expansion plans indicates a clear roadmap for leveraging their newly acquired capital.
However, like any business operating in the current global climate, Saliran Group faces its share of challenges. Key points to consider include:
- Global Macroeconomic Uncertainties: The broader economic environment could impact industrial development and infrastructure projects, which are key drivers for Saliran’s business.
- Foreign Exchange Fluctuations: As a company with regional exposure, currency volatility could affect their profitability and cost structures.
- Competition: The industry for pipes, fittings, flanges, and steel products can be competitive, requiring continuous innovation and efficiency to maintain market share.
While the initial results are promising, investors should continue to monitor the company’s progress in executing its expansion plans and managing external economic pressures. This report serves as a foundational benchmark for Saliran Group’s journey as a publicly traded company.
Final Thoughts and What’s Next
Saliran Group’s Q1 FY2025 report provides a solid foundation for their journey as a listed entity. Their established presence in the Malaysian and regional markets, coupled with a clear strategic vision, suggests a company poised for continued development. The management’s cautious optimism, balanced with proactive strategies to enhance efficiency and expand market reach, is a positive sign.
Do you think Saliran Group can maintain this momentum and successfully navigate the global uncertainties to achieve its long-term growth objectives? Share your thoughts in the comments below!
Stay tuned for more insights into Malaysian companies and market trends!