Navigating the Waters: A Deep Dive into APEX EQUITY HOLDINGS BERHAD’s Latest Financial Quarter
Greetings, fellow investors and market enthusiasts! Today, we’re unrolling the latest financial scroll from APEX EQUITY HOLDINGS BERHAD, specifically their unaudited quarterly report for the financial quarter ended 31 March 2025. This report offers a glimpse into the company’s performance, strategic moves, and the challenges it faces in a dynamic market environment.
While the report highlights a profitable quarter and significant year-to-date gains, it also comes with a unique reporting context due to a change in the financial year-end. This means direct quarter-on-quarter and year-on-year comparisons with previous corresponding periods are not available, requiring us to focus on the standalone performance and sequential changes where data permits.
Let’s unpack the numbers and understand what this means for APEX EQUITY HOLDINGS BERHAD.
Core Financial Performance: A Snapshot
APEX EQUITY HOLDINGS BERHAD has reported a notable performance for the quarter, though the absence of comparative data for the same period last year (due to a financial year-end change from 31 December 2024 to 30 June 2025) means we evaluate these figures on their own merit and in comparison to the immediate preceding quarter where available.
Quarterly Performance (Q1 2025 vs. Q1 2024)
For the quarter ended 31 March 2025 (Q1 2025), the Group recorded:
Q1 2025 (31 March 2025)
Revenue: RM13,968,000
Profit Before Tax: RM2,553,000
Net Profit After Tax: RM1,550,000
Basic Earnings Per Share: 0.76 sen
Q1 2024 (31 March 2024)
Comparative data: N/A
(Due to a change in the Group’s financial year-end from 31 December 2024 to 30 June 2025, no comparative financial information is available for the preceding year corresponding period.)
The Group’s revenue stood at RM13.97 million, leading to a profit before tax (PBT) of RM2.55 million and a net profit after tax of RM1.55 million. Basic earnings per share for the quarter were 0.76 sen.
Year-to-Date Performance (YTD 2025 vs. YTD 2024)
Looking at the year-to-date figures ended 31 March 2025, the Group achieved:
YTD 2025 (31 March 2025)
Revenue: RM70,033,000
Profit Before Tax: RM56,956,000
Net Profit After Tax: RM47,168,000
Basic Earnings Per Share: 23.28 sen
YTD 2024 (31 March 2024)
Comparative data: N/A
(Similar to the quarterly figures, year-to-date comparative financial information is not available due to the financial year-end change.)
The year-to-date performance shows a robust revenue of RM70.03 million and a significant PBT of RM56.96 million, translating to a net profit of RM47.17 million and basic earnings per share of 23.28 sen.
Sequential Quarter Comparison (Q1 2025 vs. Q4 2024)
Comparing the current quarter (Q1 2025) with the immediate preceding quarter (Q4 2024) provides a clearer picture of recent trends:
Current Quarter (Q1 2025)
Revenue: RM13,968,000
Profit Before Tax: RM2,553,000
Preceding Quarter (Q4 2024)
Revenue: RM13,555,000
Profit Before Tax: RM45,016,000
While revenue saw a modest increase of 3.0% quarter-on-quarter, PBT experienced a significant decline of 94.3%. This substantial drop in PBT is primarily attributed to a one-off gain on disposal of property recorded in the preceding quarter (Q4 2024), indicating that Q1 2025’s profit reflects the Group’s core operational performance without such extraordinary items.
Diving into Business Segment Performance
APEX EQUITY HOLDINGS BERHAD operates across several key segments:
- Stock and Securities Broking: This segment remains a cornerstone, contributing RM11.74 million in revenue for Q1 2025, driven by RM5.97 million in brokerage income and RM4.90 million in margin and other interest income. The segment recorded a PBT of RM2.91 million for the quarter. For the year-to-date, its revenue reached RM59.41 million, with PBT at RM13.90 million, largely from robust brokerage and margin interest income.
- Property Holding: This segment generated RM0.02 million in revenue for Q1 2025, with a PBT of RM0.18 million, mainly from interest income. The year-to-date performance shows RM0.68 million in revenue and a substantial PBT of RM40.01 million, which was significantly boosted by a one-off gain on disposal of property.
- Money Lending: This segment reported RM2.23 million in revenue and a PBT of RM1.07 million for Q1 2025. Year-to-date, it achieved RM10.58 million in revenue and a PBT of RM7.61 million.
- Investment Holdings and Others: This segment’s revenue for Q1 2025 stood at RM2.31 million, primarily from management fees charged to subsidiaries. However, it recorded a loss before tax of RM1.61 million for the quarter. In contrast, its year-to-date revenue was RM29.35 million, with a PBT of RM15.43 million, significantly boosted by windfall dividend income from subsidiaries.
Financial Health and Cash Flow
As of 31 March 2025, APEX EQUITY HOLDINGS BERHAD’s total assets stood at RM451.24 million, up from RM374.01 million as of 31 December 2023. Total equity increased to RM375.99 million from RM328.71 million over the same period, leading to a net assets per share of RM1.86 (vs. RM1.62 at 31 Dec 2023).
Key movements include a significant increase in non-current receivables to RM60.90 million (from RM15.00 million) and current receivables to RM313.24 million (from RM257.17 million), indicating increased business activity or extended credit terms. Cash and short-term funds saw a decrease from RM47.02 million to RM34.72 million.
The Group’s total liabilities increased to RM75.25 million from RM45.30 million, largely due to an increase in bank borrowings to RM35.04 million (from RM4.01 million), reflecting higher financing activities.
From a cash flow perspective, the Group reported net cash used in operating activities of RM92.94 million for the 15 months ended 31 March 2025, primarily due to changes in receivables. However, net cash from investing activities was positive at RM51.22 million, largely driven by proceeds from the disposal of property, plant, and equipment. Financing activities also provided RM18.40 million, mainly from bank borrowings drawdown.
Prospects and Potential Headwinds
Looking ahead, APEX EQUITY HOLDINGS BERHAD remains cautiously optimistic, aligning with Bank Negara Malaysia’s forecast of 4.5%-5.5% GDP growth for 2025, driven by resilient domestic expenditure and ongoing structural reforms. The Group plans to strengthen its position by broadening product offerings and services tailored to market demands, reflecting a proactive approach to growth.
Potential Risks on the Horizon:
While the domestic outlook is positive, the Group acknowledges several downside risks, particularly from the external sector:
- Global Trade Uncertainties: Rising global trade uncertainties and escalating trade tensions between major economic powers, especially post-reciprocal tariff announcements by the US government, could cap economic growth by limiting exports. Malaysia’s strategy to reduce reliance on US trade and boost bilateral trade with ASEAN partners is a key response.
- Loan Receivable Risk: A significant concern highlighted is the potential discontinuance of an ongoing project related to a loan receivable of RM23.8 million. The outcome of this development is currently unascertainable and may impact the credit quality of the loan. The Group is actively monitoring this matter.
- Material Litigation: The Group is involved in a material litigation regarding its Memorandum and Articles of Association (M&A). An Originating Summons seeks to substitute the existing M&A with a new Constitution to comply with Bursa Malaysia’s listing requirements. Despite multiple attempts, the proposed resolution has been defeated by collective minority shareholders. The inability to comply could expose the company to penalties or sanctions from Bursa Malaysia. The next case management is scheduled for 1 July 2025.
Summary and
APEX EQUITY HOLDINGS BERHAD’s latest quarterly report for Q1 2025 presents a mixed but overall stable picture. Despite the lack of direct comparative data for the corresponding previous periods, the Group demonstrated profitability in the current quarter, with a strong year-to-date performance largely bolstered by a one-off property disposal gain and windfall dividends. The core segments, particularly stock and securities broking and money lending, continue to generate positive results.
However, investors should be mindful of the significant challenges and risks. The impact of global economic headwinds, the uncertainty surrounding the RM23.8 million loan receivable, and the ongoing material litigation regarding the company’s constitution are factors that warrant close attention. The Group’s proactive measures to diversify offerings and manage external trade risks are positive signs, but the internal litigation issue and the loan receivable’s fate remain key uncertainties.
The Group has not recommended any dividend payment for the year-to-date ended 31 March 2025.
- Financial Year-End Change: The change in financial year-end makes direct historical comparisons difficult, requiring investors to focus on sequential performance and the overall context of the reported figures.
- One-Off Gains: A significant portion of the year-to-date profit was driven by a one-off gain from property disposal, which should be considered when assessing sustainable earnings.
- Loan Receivable Uncertainty: The RM23.8 million loan receivable tied to a potentially discontinued project presents a notable financial risk that the Group is actively monitoring.
- Constitutional Litigation: The ongoing legal challenge concerning the company’s M&A and compliance with Bursa’s listing requirements poses a regulatory and operational risk.
From a professional standpoint, APEX EQUITY HOLDINGS BERHAD’s Q1 2025 report showcases a company that is profitable and actively managing its diverse business segments. The strategic shift in financial year-end, while creating a temporary data gap, is a procedural change. The more critical aspects to monitor are the external economic environment, the resolution of the loan receivable issue, and the outcome of the material litigation. These factors will undoubtedly shape the Group’s trajectory in the coming quarters.
What are your thoughts on APEX EQUITY HOLDINGS BERHAD’s performance and the challenges it faces? Do you think the company can effectively navigate these headwinds and maintain its growth momentum in the next few years? Share your insights in the comments below!
