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Amtel Holdings Q2 FY2025: Navigating Headwinds While Gearing Up for New Ventures
Published on: July 23, 2025
Amtel Holdings Berhad has just released its financial results for the second quarter ended May 31, 2025. While the numbers show a dip in performance compared to the previous year, the real story lies in the company’s bold strategic moves. Facing market challenges head-on, Amtel is not just weathering the storm but is actively setting the stage for future growth by venturing into automotive manufacturing and sustainable EV solutions. Let’s dive into the details of their latest report.
This quarter, Amtel reported a profit after tax of RM0.89 million. Despite a challenging period, the company is making significant strides into new business areas, signaling a forward-looking strategy that investors should watch closely.
Core Data Highlights: A Look at the Numbers
A Challenging Quarter: Overall Financial Snapshot
Comparing this quarter to the same period last year, Amtel saw a decrease in both revenue and profit. This was largely influenced by softer performance in its core business segments. Here’s a side-by-side comparison of the key metrics for the second quarter (Q2 FY2025 vs Q2 FY2024):
Q2 FY2025 (Current Quarter)
- Revenue: RM15.53 million
- Profit Before Tax: RM1.27 million
- Profit After Tax: RM0.89 million
- Earnings Per Share (EPS): 0.93 sen
Q2 FY2024 (Corresponding Quarter)
- Revenue: RM19.45 million
- Profit Before Tax: RM2.48 million
- Profit After Tax: RM1.57 million
- Earnings Per Share (EPS): 1.64 sen
The decline was primarily attributed to lower sales contributions from both the Information & Communication Technology (ICT) and Telecommunications, Infrastructure & Services (TIS) segments. Let’s break down their performance further.
Deep Dive into Business Segments
For the first six months of the financial year, the ICT segment remained the primary revenue and profit driver, although it faced some headwinds. The TIS segment also experienced a slowdown.
| Segment Performance (6-Month Period) | Revenue (6M FY2025) | Revenue (6M FY2024) | Profit After Tax (6M FY2025) | Profit After Tax (6M FY2024) |
|---|---|---|---|---|
| ICT Segment | RM27.11 million | RM29.16 million | RM2.27 million | RM2.32 million |
| TIS Segment | RM5.62 million | RM7.80 million | RM0.61 million | RM1.18 million |
ICT Segment: As the core contributor, the ICT business accounted for about 82.6% of the Group’s revenue. Its slight dip in performance was due to reduced demand from automakers, a result of production shutdowns during festive seasons, alongside rising operating and development costs. However, a stronger first quarter helped cushion the overall impact for the half-year period.
TIS Segment: The TIS segment saw a more significant decrease in both revenue and profitability. This was mainly due to contributions from smaller-scale civil infrastructure projects compared to the previous year.
Risk and Prospect Analysis: Future Forward
While the current financials reflect a challenging market, Amtel’s management is proactively steering the company towards new horizons. The group’s prospects are anchored in strategic expansion and a commitment to innovation.
Opportunities on the Horizon
- Entry into Automotive Manufacturing: In a major strategic move announced post-quarter, Amtel is venturing into motor vehicle manufacturing and assembly. By leveraging its ICT team’s deep expertise in product design, engineering, and supply chain management, the company aims to solidify its position within the automotive ecosystem.
- Green Mobility Initiatives: Embracing sustainability, Amtel, through its subsidiary, signed an MOU with PRO-NET to manage the sustainable disposal of electric vehicle (EV) batteries. This initiative aligns with Malaysia’s green mobility goals and opens up a new, future-focused revenue stream.
Navigating Potential Risks
- Market Volatility: The performance of the ICT segment is closely tied to the automotive industry’s production cycles, making it susceptible to slowdowns.
- Cost Pressures: Like many companies, Amtel faces the challenge of rising operating and development costs, which can impact profit margins if not managed effectively.
The management remains optimistic, expressing confidence in delivering favourable results for the financial year by enhancing operational efficiency and pursuing these strategic growth opportunities.
No Dividends This Quarter
The Board of Directors has not recommended the payment of any dividend for the current financial period ended 31 May 2025.
Summary and Outlook
In summary, Amtel Holdings’ Q2 FY2025 results paint a picture of a company navigating short-term industry pressures while making bold, strategic bets on its future. The decline in quarterly profit is a key point, but it’s counterbalanced by a healthy balance sheet and exciting new ventures in automotive assembly and EV battery management. These moves demonstrate a clear intent to evolve and capture value in high-growth sectors. As a financial blogger, my goal is to provide analysis and insights, not investment advice. This summary is for informational purposes only and should not be considered a recommendation to buy or sell.
Key takeaways for investors to consider:
- Strategic Pivot: The move into vehicle manufacturing is a significant diversification that could redefine the company’s growth trajectory.
- Sustainability Angle: The EV battery disposal partnership with PRO-NET positions Amtel within the critical green technology space.
- Core Business Headwinds: The reliance on the automotive sector for its core ICT business remains a key risk, as seen in this quarter’s results.
- Financial Prudence: Despite lower profits, the company maintains a stable financial position with improved net assets per share.
While the short-term numbers reflect market pressures, Amtel’s strategic pivots are forward-looking and could position them well in the evolving automotive ecosystem. The execution and success of these new ventures will be critical to watch in the coming quarters.
What are your thoughts on Amtel’s move into vehicle assembly? Can they successfully leverage their ICT expertise in this new domain?
Share your views in the comments below!
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