Navigating the Currents: A Deep Dive into Ta Win Holdings Berhad’s Latest Financials
Greetings, fellow investors! Today, we’re unpeeling the layers of TA WIN HOLDINGS BERHAD’s (Ta Win) latest quarterly report for the financial period ended 31 March 2025. This report provides a crucial snapshot of the company’s performance, revealing a mixed bag of increased revenue alongside a significant rise in losses. Let’s delve into the numbers to understand what’s driving these trends and what lies ahead for this Malaysian industrial player.
Core Data Highlights: A Closer Look at the Numbers
Ta Win’s latest quarter, ending 31 March 2025, presents a fascinating picture. While revenue saw an uptick compared to the immediate preceding quarter, the Group recorded a substantial increase in its loss before tax. Let’s break down the key figures:
Quarterly Performance: Current Quarter vs. Immediately Preceding Quarter
Revenue (31 Mar 2025):
RM154.6 million
Revenue (31 Dec 2024):
RM146.1 million
Revenue increased by RM8.5 million or 5.8%, primarily driven by the copper product segment due to higher London Metal Exchange (LME) prices. However, the cable and wire, and wire harness and power cord segments saw decreases, mainly due to lower production volumes impacted by holiday festivities.
Loss Before Tax (31 Mar 2025):
RM(58.1) million
Loss Before Tax (31 Dec 2024):
RM(4.3) million
The Group’s loss before tax significantly widened by RM53.9 million or 1266.9%. This was largely attributable to the “other” segment, which experienced impairment losses on investments and receivables. The copper product segment also contributed to the loss due to impairment provisions on property, plant and equipment, and receivables, alongside diminished profit margins from rising raw material costs, especially for copper.
Quarterly Performance: Current Quarter vs. Same Quarter Last Year
Revenue (31 Mar 2025):
RM154.6 million
Revenue (31 Mar 2024):
RM164.7 million
Compared to the same quarter last year, revenue decreased by RM10.1 million or -6.1%. This decline was primarily due to lower sales volume in the copper product segment, with only the Melaka plant operating.
Loss Before Tax (31 Mar 2025):
RM(58.1) million
Loss Before Tax (31 Mar 2024):
RM(5.4) million
The loss before tax also surged significantly compared to the same quarter last year, primarily driven by the copper product segment’s impairment provisions and margin compression from rising copper costs, and impairment losses in the “other” segment.
Cumulative 9-Month Performance
Revenue (9-month FPE 31 Mar 2025):
RM522.6 million
Revenue (9-month FPE 31 Mar 2024):
RM466.8 million
For the cumulative nine months, revenue increased by RM55.9 million or 12.0%, largely due to higher LME copper prices benefiting the copper product segment.
Loss Before Tax (9-month FPE 31 Mar 2025):
RM(79.1) million
Loss Before Tax (9-month FPE 31 Mar 2024):
RM(14.6) million
Despite the revenue growth, the cumulative loss before tax also increased substantially, again primarily due to impairment provisions in the “other” and copper product segments, along with margin compression in copper products.
Loss Per Share (LPS)
The basic loss per share for the current quarter was (1.595) sen, a significant increase from (0.134) sen in the same quarter last year. For the cumulative nine months, basic loss per share stood at (2.124) sen, compared to (0.349) sen previously.
Segmental Performance Breakdown (31 March 2025 Quarter)
| Segment | Revenue (RM’000) | Operating Profit/(Loss) (RM’000) |
|---|---|---|
| Copper product | 133,714 | (33,433) |
| Cable and wire | 8,763 | (2,026) |
| Wire harness and power cord | 12,098 | (87) |
| Warehousing and logistic | 11 | 71 |
| Other | – | (20,648) |
| Total | 154,586 | (56,123) |
The copper product segment remains the largest revenue contributor but also the largest source of operating loss. The “other” segment, despite no revenue, incurred a significant operating loss, mainly due to impairment provisions.
Financial Position Snapshots
As of 31 March 2025, the Group’s total borrowings stood at RM140.7 million, comprising RM119.5 million in short-term borrowings and RM21.2 million in long-term borrowings. The company also utilizes commodity swaps to mitigate copper price risk, with a fair value of RM27.2 million for contracts less than 1 year.
Risks and Prospects: Navigating a Dynamic Landscape
The Malaysian economy grew by 4.4% in Q1 2025, driven by robust domestic demand, household spending, and investment activities. While overall export growth slowed, strong electrical and electronics (E&E) exports provided some offset. Looking ahead, Bank Negara Malaysia anticipates a slightly lower growth forecast for 2025 due to rapidly evolving global trade tariffs, though resilient domestic demand is expected to provide a buffer.
In response to these conditions, Ta Win Group is implementing several strategic initiatives:
- Ta Win Industries (M) Sdn Bhd: Focusing on asset streamlining to optimize cost structures and enhance production efficiency, while intensifying marketing efforts and supporting downstream subsidiaries.
- Cyprium Wire Technology Sdn. Bhd. (CWT): Committed to advancing green energy, electric vehicle (EV) infrastructure, and high-voltage cable solutions. CWT manufactures solar, radiation-resistant, and EV charging cables, and plans to acquire new machinery for automotive wires and appliance wires for the E&E industry. They are leveraging their Electron Beam facility for high-voltage, high-temperature cables.
- Sin Line Tek Electronic Co., Sdn. Bhd. (SLT): Ramping up business development for new products through R&D, expanding production capacity, securing new clients, and implementing cost control. SLT is also exploring opportunities in the EV industry and related green sectors.
Despite these proactive measures, the Group anticipates ongoing challenges, including escalating tariffs and trade tensions, geopolitical uncertainties, supply chain disruptions, and fluctuations in copper prices and exchange rates. Ta Win remains cautiously optimistic, committed to monitoring market developments, strengthening strategic partnerships, and enhancing operational efficiency.
It’s also important to note the status of ongoing corporate proposals: the Terengganu Ecocycle Park diversification is pending shareholder approval after a supplemental joint venture agreement; the disposal of Royce Pharma Manufacturing Sdn Bhd shares is still pending negotiation with multiple extensions; and the acquisition of Sin Line Tek Electronic Co Sdn Bhd is in negotiation due to the failure to meet the second profit guarantee period.
Summary and
Ta Win Holdings Berhad’s latest quarterly report paints a complex picture. While the company demonstrated resilience in increasing its revenue compared to the immediate preceding quarter, driven by higher copper prices, the significant increase in loss before tax is a clear area of concern. This was largely due to substantial impairment provisions across various segments and the impact of rising raw material costs on profit margins, particularly in the copper product segment.
The Group is proactively addressing market challenges by streamlining operations, investing in high-growth areas like green energy and EV infrastructure, and expanding production capabilities across its subsidiaries. These strategic shifts aim to enhance efficiency, capture new market opportunities, and improve profitability in the long run.
However, the external environment remains volatile, with global trade tensions, geopolitical risks, and commodity price fluctuations posing continuous headwinds. The ongoing corporate proposals, particularly the unresolved profit guarantee for Sin Line Tek and the prolonged disposal of Royce Pharma, add layers of uncertainty that investors should monitor closely.
The company’s focus on operational efficiency and diversification into future-proof sectors like green energy and EVs signals a clear strategic direction. Yet, the immediate financial results underscore the challenges of execution and market dynamics.
Key risk points to consider from this report include:
- Significant increase in loss before tax due to impairment provisions and rising raw material costs.
- Dependence on copper prices, which can be highly volatile.
- Impact of global trade tariffs and geopolitical tensions on the overall economic outlook.
- Unresolved issues with ongoing corporate proposals, such as the profit guarantee for Sin Line Tek and the disposal of Royce Pharma.
- Operational challenges, including the reduced sales volume in the copper product segment due to only one plant operating.
From a blogger’s perspective, Ta Win is clearly at a pivotal juncture. The strategic pivots towards green energy and EV components are commendable and align with global trends, offering significant long-term potential. However, the short-term financial performance, particularly the widening losses driven by impairments and cost pressures, suggests that these transitions come with substantial challenges and require careful management. The company’s ability to successfully execute its strategies and navigate the external headwinds will be critical in determining its future trajectory.
What are your thoughts on Ta Win’s latest performance and its strategic direction? Do you think the company can successfully leverage its new initiatives to return to profitability amidst these challenging market conditions? Share your insights in the comments below!
