Greetings, fellow investors and market enthusiasts!
Today, we’re diving into the latest financial performance of EDARAN BERHAD, fresh off their quarterly report for the period ended 30 June 2025. As a prominent player in the Malaysian market, EDARAN’s results always draw attention, and this report offers a compelling narrative of growth, strategic adjustments, and a clear outlook for the future.
On a full-year basis, the company delivered a robust performance, showcasing significant growth in both revenue and profit before taxation, underscoring its resilience and strategic execution. This positive momentum culminated in a commendable dividend announcement, a welcome signal for shareholders. While the full-year picture is bright, let’s also examine the nuances of the current quarter’s performance and delve into the underlying factors driving EDARAN’s trajectory.
Full-Year Performance: A Strong Trajectory
EDARAN BERHAD concluded its financial year ended 30 June 2025 with an impressive performance, signaling a period of robust expansion. The company’s strategic initiatives clearly paid off, leading to substantial gains across key financial metrics.
Current Year to Date (30/06/2025)
Revenue: RM132,956,000
Profit Before Taxation: RM6,974,000
Profit After Taxation: RM4,068,000
Earnings Per Share: 7.03 sen
Corresponding Year to Date (30/06/2024)
Revenue: RM106,537,000
Profit Before Taxation: RM5,119,000
Profit After Taxation: RM3,112,000
Earnings Per Share: 5.37 sen
For the financial year ended 30 June 2025, EDARAN BERHAD’s revenue soared by 24.8% to RM132.956 million, a significant leap from RM106.537 million in the corresponding period of the previous year. This impressive top-line growth cascaded down to the bottom line, with profit before taxation (PBT) increasing by a substantial 36.2% to RM6.974 million, up from RM5.119 million. Consequently, profit after taxation also saw a healthy rise to RM4.068 million, pushing earnings per share to 7.03 sen.
Current Quarter Performance: A Closer Look
While the full-year results paint a picture of strong growth, the current quarter ended 30 June 2025 (4Q25) presented a slightly different dynamic when compared to the corresponding quarter last year (4Q24).
Current Quarter (30/06/2025)
Revenue: RM33,069,000
Profit Before Taxation: RM1,896,000
Profit After Taxation: RM1,321,000
Earnings Per Share: 2.28 sen
Corresponding Quarter (30/06/2024)
Revenue: RM36,095,000
Profit Before Taxation: RM1,916,000
Profit After Taxation: RM1,339,000
Earnings Per Share: 2.31 sen
For the current quarter, revenue registered RM33.069 million, an 8.4% decrease from RM36.095 million in the corresponding quarter. Profit before taxation also saw a marginal dip of 1.0% to RM1.896 million from RM1.916 million, and profit after taxation came in at RM1.321 million, with earnings per share at 2.28 sen.
However, it’s worth noting that the Group recorded a higher profit before taxation for the current quarter compared to the preceding quarter (31 March 2025). This improvement was mainly attributed to lower operating costs and a reduced provision for taxation in the current quarter, indicating effective cost management internally despite the slight year-on-year quarterly dip.
Segmental Performance: IT Leads the Way
A look into EDARAN’s business segments for the financial year ended 30 June 2025 reveals that the Information Technology (IT) sector remains the primary growth engine.
| Segment | Revenue (RM’000) | Profit/(Loss) from Operations (RM’000) |
|---|---|---|
| Information Technology | 137,895 | 19,820 |
| Lifestyle & Telecommunication | 680 | (2,452) |
| Others | 11,190 | 4,053 |
The Information Technology segment generated a significant RM137.895 million in revenue and contributed RM19.820 million to operational profit, showcasing its dominant role in the Group’s success. The “Others” segment also contributed positively with RM11.190 million in revenue and RM4.053 million in profit. Conversely, the Lifestyle & Telecommunication segment continued to face challenges, recording a loss of RM2.452 million despite generating RM680,000 in revenue.
Financial Health and Cash Flow: A Strong Position
EDARAN’s balance sheet as at 30 June 2025 reflects a stable, albeit slightly adjusted, financial position, with a notable improvement in cash flow generation.
Total assets stood at RM197.600 million, a slight decrease from RM217.454 million last year. However, total equity attributable to owners of the company saw a healthy increase to RM32.903 million from RM31.585 million. A significant change was observed in asset composition, with Property, Plant and Equipment increasing substantially to RM101.394 million from RM10.403 million, while Right-of-Use assets decreased significantly to RM19.459 million from RM145.671 million. This shift suggests a potential reclassification or strategic capital deployment.
One of the standout achievements is the dramatic improvement in cash flow. Net cash generated from operating activities surged to RM45.693 million for the year to date, a stark turnaround from a cash outflow of RM5.842 million in the corresponding period last year. This led to a substantial increase in cash and cash equivalents, which closed the year at RM37.947 million, compared to RM12.162 million previously.
The Group’s borrowings, comprising both short-term (RM39.904 million) and long-term (RM87.026 million) liabilities, reflect the company’s financing structure. Notably, the company undertook a capital reduction exercise of up to RM52.000 million during the period, resulting in a restructured issued share capital of RM16.022 million comprising 60,000,000 shares, a strategic move to optimize its capital structure.
Shareholder Returns: Interim Dividends Declared
In a positive move for shareholders, EDARAN BERHAD announced and paid interim dividends for the financial year ended 30 June 2025.
A first interim single tier dividend of 3.0 sen per ordinary share (amounting to RM1.737 million) was paid in February 2025, followed by a second interim single tier dividend of 1.75 sen per ordinary share (amounting to RM1.013 million) paid in July 2025. This brings the cumulative interim dividends for FY25 to a total of 4.75 sen per ordinary share, amounting to RM2.750 million.
Prospects and Areas to Monitor
Looking ahead, EDARAN BERHAD maintains an optimistic outlook, anticipating positive financial performance in the subsequent quarters.
This positive sentiment is underpinned by the strong full-year performance, robust cash flow generation, and the continued leadership of its Information Technology segment. The company’s ability to generate significant operating cash reflects sound business fundamentals and operational efficiency.
However, vigilant observation is key. While the full-year results are excellent, the slight dip in current quarter revenue and profit compared to the corresponding quarter last year warrants attention. The persistent losses in the Lifestyle & Telecommunication segment also present an area for strategic review or operational improvement. Furthermore, the notable increase in finance costs year-to-date (RM9.413 million compared to RM2.026 million in the corresponding previous year) could impact profitability if not managed effectively. The significant re-composition of assets also suggests ongoing strategic adjustments that will bear watching.
Summary and Investment Recommendations
EDARAN BERHAD’s latest report for the financial year ended 30 June 2025 paints a picture of substantial full-year growth, driven primarily by its core Information Technology segment. The remarkable turnaround in operating cash flow is a particularly strong positive, indicating a healthy operational core. Shareholders were also rewarded with a cumulative dividend for the year, reflecting the company’s commitment to returns. The strategic capital reduction further demonstrates proactive balance sheet management.
While the overall outlook is positive, investors may wish to keep an eye on a few areas:
- The slight year-on-year decline in revenue and profit for the most recent quarter, despite an improvement from the previous quarter.
- The sustained losses within the Lifestyle & Telecommunication business segment.
- The significant increase in finance costs year-to-date, which could influence future earnings.
- The substantial shift in asset composition, particularly between Property, Plant & Equipment and Right-of-Use assets, which might indicate ongoing strategic reallocations.
Overall, EDARAN BERHAD has demonstrated a strong full-year performance with commendable cash generation. Will the company be able to maintain this impressive momentum and address the segment challenges in the coming quarters?
What are your thoughts on EDARAN BERHAD’s latest results and future prospects? Share your insights in the comments section below!
