TRIVE PROPERTY GROUP BERHAD: A Deep Dive into Q3 FY2025 Performance – A Tale of Profit Turnaround Amidst Revenue Shifts
Hello fellow Malaysian investors! Today, we’re taking a closer look at the latest financial health check of TRIVE PROPERTY GROUP BERHAD, a name familiar in Malaysia’s property landscape. The company has just released its unaudited quarterly report for the period ended 30 April 2025 (Q3 FY2025), and it presents a fascinating picture of strategic shifts and operational resilience.
While the property sector continues to navigate evolving market dynamics, TRIVE Property’s latest report reveals a significant turnaround in profitability for the quarter, despite a notable dip in revenue. This intriguing mix of performance metrics warrants a closer examination. Let’s unwrap the key figures and understand what’s driving these changes and what they might mean for the company’s future.
Core Data Highlights: Unpacking the Numbers
Quarterly Performance (Feb’25 – Apr’25 vs. Feb’24 – Apr’24)
The third quarter of the financial year 2025 saw TRIVE Property achieve a remarkable improvement in its bottom line, showcasing effective cost management and an increase in other operating income.
Current Quarter (Q3 FY2025)
Revenue: RM537,000
Gross Profit: RM321,000
Profit Before Taxation: RM178,000
Profit for the Period: RM167,000
Basic Earnings Per Share: RM0.01
Corresponding Quarter (Q3 FY2024)
Revenue: RM2,778,000
Gross Profit: RM366,000
Profit Before Taxation: RM49,000
Profit for the Period: RM49,000
Basic Earnings Per Share: RM0.00
While revenue saw a significant decrease of approximately 80.7% from RM2.78 million to RM0.54 million, the company managed to turn a profit before tax of RM178,000, a substantial increase from RM49,000 in the same quarter last year. This impressive 263% surge in pre-tax profit, despite lower revenue, suggests strong control over costs and potentially successful one-off gains or other income streams.
Year-to-Date Performance (Aug’24 – Apr’25 vs. Aug’23 – Apr’24)
The nine-month cumulative performance also reflects a positive trend in profitability, mirroring the quarterly improvements.
Current Year-to-Date (9M FY2025)
Revenue: RM2,071,000
Gross Profit: RM936,000
Profit Before Taxation: RM176,000
Profit for the Period: RM165,000
Basic Earnings Per Share: RM0.01
Corresponding Period (9M FY2024)
Revenue: RM5,399,000
Gross Profit: RM777,000
Profit Before Taxation: RM89,000
Profit for the Period: RM89,000
Basic Earnings Per Share: RM0.01
For the cumulative nine months, revenue declined by about 61.7% from RM5.4 million to RM2.07 million. However, Profit Before Taxation more than doubled, increasing by approximately 97.8% from RM89,000 to RM176,000. This consistent profitability growth, despite revenue challenges, points to a strong focus on operational efficiency and managing the cost of sales.
Financial Health: A Look at the Balance Sheet (As at 30 April 2025)
The company’s financial position shows stability with some notable shifts:
| Item | 30 April 2025 (RM’000) | 31 July 2024 (RM’000) |
|---|---|---|
| Total Assets | 125,957 | 123,354 |
| Total Equity | 113,781 | 113,616 |
| Net Asset Per Share (RM) | 0.09 | 0.09 |
A significant highlight from the Statement of Changes in Equity is the Share Capital Reduction of RM85 million. This strategic move effectively reclassified a portion of the share capital to offset accumulated losses, resulting in a positive accumulated profit balance of RM2.743 million as of April 30, 2025, compared to accumulated losses of RM82.422 million as of July 31, 2024. This action significantly strengthens the company’s equity position and improves its financial optics.
However, it’s also worth noting the decrease in cash and bank balances from RM1.71 million to RM0.19 million, indicating a tighter cash position despite the improved profitability.
Cash Flow: Where the Money Goes
Cash flow from operations turned negative this period, which is an important aspect to monitor.
Current Period (9M FY2025)
Net Cash (Used In) Operating Activities: (RM1,433,000)
Net Cash (Used In) Investing Activity: RM0
Net Cash (Used In) Financing Activity: (RM84,000)
Net (Decrease) in Cash and Cash Equivalents: (RM1,517,000)
Corresponding Period (9M FY2024)
Net Cash Generated From Operating Activities: RM712,000
Net Cash Used In Investing Activity: (RM157,000)
Net Cash Generated From Financing Activity: RM103,000
Net Increase in Cash and Cash Equivalents: RM658,000
TRIVE Property experienced a net cash outflow of RM1.52 million this period, a significant shift from the RM0.66 million net inflow in the previous corresponding period. This was primarily driven by a negative cash flow from operating activities, suggesting that while the company is profitable on paper, it’s currently using more cash than it generates from its core operations. This could be due to changes in working capital, such as a decrease in trade receivables and an increase in other receivables and accruals, as seen in the balance sheet.
Risk and Prospect Analysis: Navigating the Future
Potential Risks
Despite the strong profit turnaround, some areas warrant attention:
- Revenue Decline: The significant drop in both quarterly and year-to-date revenue indicates ongoing challenges in securing new projects or sales, which could impact long-term sustainability if not addressed.
- Cash Flow from Operations: The negative cash flow from operating activities is a concern, as it implies that the company’s core business is not generating sufficient cash to fund its operations. Continued negative operating cash flow could necessitate external financing.
- Market Headwinds: The broader property market in Malaysia still faces challenges such as oversupply in certain segments and cautious consumer spending, which could continue to pressure revenue.
Prospects and Strategies
On the flip side, TRIVE Property has demonstrated resilience and strategic foresight:
- Profitability Improvement: The ability to significantly increase profit despite revenue decline highlights strong internal cost controls and potentially successful diversification of income streams, such as “other operating income.” This indicates efficient management of resources.
- Strengthened Financial Structure: The share capital reduction is a crucial step in improving the company’s balance sheet by eliminating accumulated losses and moving into a positive accumulated profit position. This enhances financial stability and investor confidence.
- Focus on Efficiency: The improved gross profit margin (from 13.2% to 59.8% for the quarter) even with lower revenue, points to better project selection or more efficient execution, reducing the cost of sales relative to revenue.
- Strategic Asset Management: The increase in “Other receivables, deposits and prepayments” might suggest strategic initiatives or upcoming projects that require upfront payments or deposits, potentially paving the way for future revenue.
The company’s strategy appears to be focused on optimizing its operational efficiency and strengthening its financial foundation, which are critical steps in navigating a dynamic property market. The positive shift in accumulated profits after the capital reduction positions TRIVE Property on a more stable footing for future endeavors.
Summary and Investment Considerations
TRIVE PROPERTY GROUP BERHAD’s Q3 FY2025 report paints a picture of a company in transition. While facing a significant reduction in revenue, it has demonstrated a remarkable ability to turn around its profitability, both for the quarter and year-to-date. This profit surge is a testament to effective cost management and potentially successful non-core income generation. Furthermore, the strategic share capital reduction has significantly bolstered the company’s equity, moving it from accumulated losses to a positive accumulated profit position, which is a strong signal of financial restructuring and commitment to long-term health.
However, the negative cash flow from operations and the continued decline in revenue are points that warrant close monitoring. For Malaysian retail investors, it’s crucial to consider these dynamics:
- Revenue Generation: Will TRIVE Property be able to reverse the declining revenue trend in upcoming quarters? Sustainable growth ultimately hinges on robust sales and project pipeline.
- Cash Flow Sustainability: The shift to negative operating cash flow needs attention. How will the company fund its operations and growth initiatives if this trend continues?
- Operational Efficiency vs. Market Growth: While internal efficiency is commendable, the company’s long-term performance will also depend on its ability to capitalize on market opportunities and expand its revenue base.
Overall, TRIVE Property’s latest report indicates a company that is actively managing its financial health and operational efficiency. The profit turnaround and balance sheet strengthening are significant positives. However, the top-line revenue challenges and cash flow dynamics suggest a need for continued vigilance.
What are your thoughts on TRIVE Property’s latest performance? Do you think the company can maintain this growth momentum and address its revenue challenges in the coming quarters? Share your views in the comments section below!
For more insights into Malaysian companies and market trends, be sure to explore our other articles.
