Tri-Mode System’s Q2 2025 Results: Steady Revenue Amidst Economic Headwinds
Tri-Mode System (M) Berhad, a key player in Malaysia’s logistics sector, has just released its financial results for the second quarter ended June 30, 2025. The report paints a picture of resilience, with the company successfully maintaining its revenue stream in a challenging global environment. However, a closer look reveals that profitability is facing some pressure. Let’s dive into the details to understand what’s driving their performance and what the future might hold.
A key takeaway from this quarter is the company’s ability to sustain its top line, showcasing operational stability. While revenue saw a slight uptick, year-to-date profits have declined, primarily due to external pressures and internal cost factors.
Core Financials: A Tale of Two Halves
In the second quarter of 2025, Tri-Mode demonstrated its ability to hold its ground. Let’s compare the key metrics against the same period last year to get a clearer picture of their performance.
Quarterly Performance (Q2 2025 vs Q2 2024)
Q2 2025 (Current Quarter)
Revenue: RM 20.55 million
Profit Before Tax (PBT): RM 0.27 million
Profit After Tax (PAT): RM 0.21 million
Earnings Per Share (EPS): 0.12 sen
Q2 2024 (Comparative Quarter)
Revenue: RM 20.29 million
Profit Before Tax (PBT): RM 0.27 million
Profit After Tax (PAT): RM 0.22 million
Earnings Per Share (EPS): 0.13 sen
The company’s revenue grew by a modest 1.25% compared to the same quarter last year, a commendable feat given the economic climate. However, profit after tax saw a slight dip of 5.07%. This indicates that while business activity is stable, cost pressures are beginning to impact the bottom line.
Year-to-Date Performance
Looking at the first six months of 2025, the trend of pressured profitability becomes more apparent. Year-to-date revenue remained flat, but Profit Before Tax (PBT) and Profit After Tax (PAT) decreased by 33.76% and 41.43% respectively. The company attributes this to lower other income, a reduced share of results from associates, and higher depreciation provisions.
Dissecting the Revenue Streams
Tri-Mode’s strength lies in its diversified logistics services. The core contributors to its revenue remain consistent, highlighting the stability of its primary operations. Here’s a breakdown of the revenue for the first half of 2025:
| Business Segment | Revenue (RM’000) | Percentage of Total |
|---|---|---|
| Sea Freight | 23,126 | 58.1% |
| Container Haulage | 10,877 | 27.3% |
| Warehousing | 4,005 | 10.1% |
| Freight Forwarding | 984 | 2.5% |
| Air Freight | 663 | 1.7% |
| Marine Insurance | 141 | 0.4% |
Sea freight continues to be the dominant revenue driver, followed by container haulage and warehousing. This solidifies their position as a comprehensive logistics provider. Geographically, 92.3% of the revenue is generated from Malaysia, underscoring their strong domestic presence.
Navigating Risks and Charting the Future
The management acknowledges the challenging road ahead. The World Bank has lowered its global GDP growth forecast for 2025, and Malaysia’s own projected growth has been trimmed due to global economic uncertainty and trade tensions. This creates a “cautious operating landscape” for the logistics industry, which is closely tied to economic performance.
Despite these headwinds, Tri-Mode is not standing still. The Group is focused on long-term growth and has clear strategies in place to mitigate risks and capitalize on opportunities. A significant move is their expansion in the warehousing segment. The company has acquired approximately 12.85 acres of leasehold land to expand its warehousing services over the next 3 to 5 years. This strategic investment is aimed at capturing future demand and strengthening a key revenue pillar.
The board’s strategy revolves around diligent cost management, continuous service improvement, and this strategic capacity expansion to create sustainable long-term value for shareholders.
Dividend Announcement
For the current financial period, the Board of Directors has not recommended any dividend payout. This decision likely reflects a prudent approach to cash management, preserving capital for operational needs and strategic investments like their warehousing expansion amidst the uncertain economic outlook.
Summary and Outlook
In summary, Tri-Mode’s Q2 2025 results reflect a company that is navigating a tough market with resilience. While revenue remains stable, profitability is under pressure from macroeconomic factors. The company’s proactive approach, particularly its significant investment in expanding its warehousing capacity, signals a clear focus on long-term growth and value creation. The journey ahead in 2025 is expected to be challenging, but Tri-Mode’s strategic initiatives position it to weather the storm and capitalize on future opportunities.
Investors should keep an eye on the following key factors and potential risks outlined by the company:
- Higher Operating Costs: Persistent inflationary pressures could continue to squeeze profit margins.
- Government Policy Adjustments: Changes in national policies could impact the logistics sector’s operating environment.
- Global Trade Uncertainty: The ongoing uncertainty in global trade policies and potential for increased trade barriers pose a direct risk to logistics volumes.
Final Thoughts
From a professional standpoint, Tri-Mode’s report showcases a classic case of a fundamentally sound company bracing for external economic pressures. Their ability to maintain revenue is a positive sign of their market position. The strategic land acquisition for warehousing is a forward-thinking move that could pay significant dividends in the future, shifting their revenue mix towards a potentially higher-margin segment. While the short-term profit dip is a concern, their focus on cost control and strategic growth is the right approach in this climate.
What are your thoughts on Tri-Mode’s performance and their strategy to expand their warehousing services? Do you think this is the right move to ensure long-term growth in the current economic landscape?
Share your views in the comments below!
