WMG Holdings BHD. Posts Strong Rebound in Q1 FY2026 Earnings!
Hello fellow investors and market watchers!
WMG Holdings Bhd. has just released its unaudited interim financial statements for the first quarter ended 30 June 2025 (Q1 FY2026). This report provides a crucial glimpse into the company’s performance as it embarks on a new financial year. After a period of careful restructuring and strategic adjustments, the company is showing promising signs of a turnaround, with impressive profit growth being a key highlight. Let’s dive deeper into the numbers and what they mean for this Malaysian property and building materials player.
Navigating the Financials: A Quarter of Growth
WMG Holdings Bhd. has demonstrated a significant improvement in its financial performance this quarter. It’s important to note that due to a change in the company’s fiscal year-end from 31 December 2024 to 31 March 2025, direct comparative figures for the same period last year are not available. Therefore, our analysis will focus on the quarter-on-quarter performance against the immediate preceding quarter (Q4 FY2025, ended 31 March 2025), where the company experienced a loss.
Key Takeaway: WMG Holdings Bhd. has successfully transitioned from a loss in the immediate preceding quarter to a commendable profit in Q1 FY2026, driven by robust revenue growth in its core segments.
Revenue and Profitability Surge
The company recorded a substantial increase in both revenue and profitability compared to the immediate preceding quarter. This indicates strong operational recovery and effective cost management. The Group’s total revenue for Q1 FY2026 stood at RM25.70 million, a significant increase from the RM19.08 million in Q4 FY2025.
Q1 FY2026 (30 June 2025)
Revenue: RM25,704,000
Gross Profit: RM6,686,000
Profit Before Tax: RM3,397,000
Profit After Tax: RM2,053,000
Diluted Earnings Per Share: 0.17 sen
Immediate Preceding Quarter (31 March 2025)
Revenue: RM19,076,000
Gross Profit: RM2,473,000
Loss Before Tax: (RM2,018,000)
Loss After Tax: (RM993,000)
Loss Per Share (attributable to ordinary equity holders): (0.08) sen (basic)
The rebound is clear:
- Revenue increased by RM6.63 million or a robust 35% quarter-on-quarter.
- Gross Profit soared by RM4.21 million, a remarkable 170% increase.
- Profit Before Tax (PBT) saw a turnaround of RM5.42 million, moving from a loss to a profit.
- Profit After Tax (PAT) similarly transformed, with a RM3.05 million improvement.
- This led to a diluted earnings per share of 0.17 sen, a significant positive shift from the basic loss per share in the previous quarter. The basic loss per share of (0.08) sen for the current quarter is primarily due to the cumulative dividend on Redeemable Convertible Preference Shares (RCPS).
Behind these numbers, WMG Holdings Bhd. cited higher property sales and an increased percentage of completion of ongoing developments as key drivers for the revenue surge.
Segmental Contributions
The property segment remains the powerhouse for WMG Holdings Bhd., contributing the lion’s share of the revenue, complemented by a steady performance from its building materials division.
| Segment | Revenue (RM’000) | Percentage of Total Revenue |
|---|---|---|
| Property | 21,263 | 83% |
| Building Materials | 4,441 | 17% |
| Total | 25,704 | 100% |
Within the property segment, sales of properties accounted for RM19.23 million, with property letting generating RM2.03 million. Notably, RM1.57 million (35%) of the building materials sales were to contractors engaged by the Group for its own property development projects, showcasing synergy within the business units.
Other Notable Financial Aspects
The Group’s “other income” for the period included approximately RM0.94 million from recurring rental-related income, which is a stable component, and a significant RM1.00 million from a litigation settlement. Administrative expenses, at RM2.40 million, were primarily comprised of staff costs (RM0.75 million), directors’ remuneration (RM0.51 million), and general overheads and office expenses (RM1.14 million), including depreciation of RM0.26 million.
Strategic Outlook and Managing Risks
WMG Holdings Bhd. isn’t just focused on current performance; it’s actively shaping its future. The company’s management appears to be taking proactive steps to ensure sustainable growth while addressing potential challenges.
Looking Forward: The Group is cautiously optimistic, underpinned by strong sales momentum, strategic landbank management, and a focus on portfolio optimization.
Strong Sales Momentum and Development Pipeline
As of 31 July 2025, WMG Holdings Bhd. maintains strong sales momentum across its ongoing developments in Kota Kinabalu and Sandakan. Both Parklane Garden (Sandakan) and Parklane 2 (Kota Kinabalu) have achieved an impressive 97% sales rate. This indicates high market acceptance for their projects.
The unbilled sales for these two projects currently stand at approximately RM12.51 million, providing revenue visibility for the upcoming periods. Furthermore, the Gross Development Value (GDV) of unsold units is approximately RM23.96 million, representing future revenue potential. Management is confident that this sustained sales momentum will continue to bolster cash flow and support future expansion.
In line with its growth ambitions, the Group plans to submit four new development plans within the current financial year. This proactive approach to replenishing its development pipeline is crucial for maintaining market presence and seizing new opportunities, particularly with a substantial land bank of 627 acres, split between Sandakan (465 acres) and Kota Kinabalu (162 acres).
Asset Portfolio Optimization
WMG Holdings Bhd. is also strategically reviewing and optimising its asset portfolio. This includes the monetization of non-strategic assets and the redeployment of capital into higher-yield opportunities. This disciplined approach to capital allocation can enhance shareholder value and improve overall efficiency.
Litigation Settlement and Capital Commitments
The company recently settled a material litigation case for RM850,000. This settlement, which contributed to the “other income” for the quarter, resolves past disputes and allows the company to focus its resources forward. The Group also has capital commitments totaling RM879,000 for office relocation, renovation, and IT equipment in Sandakan and Kota Kinabalu, signaling investments in operational infrastructure.
Summary and Investment Recommendations
WMG Holdings Bhd.’s Q1 FY2026 report paints a picture of a company regaining its stride. The significant turnaround from a loss in the immediate preceding quarter to a healthy profit underscores the effectiveness of its current strategies and the robust demand for its property offerings. While the lack of year-on-year comparative data due to the fiscal year-end change prevents a longer-term trend analysis for this specific period, the quarter-on-quarter improvements are undeniably strong.
Key highlights from this report include:
- Strong quarter-on-quarter financial recovery, with significant increases in revenue, gross profit, and a return to profitability.
- The property segment continues to be the primary revenue driver, supported by high sales rates in key developments.
- A healthy pipeline of unbilled sales and future development plans providing revenue visibility and growth potential.
- Strategic initiatives for asset portfolio optimization aimed at enhancing overall financial health.
- Positive operating and investing cash flows, contributing to an overall increase in cash and cash equivalents.
The Board’s cautiously optimistic outlook reflects a balanced view of market opportunities and challenges, with a clear focus on strengthening the Group’s financial position and performance.
Your Thoughts and the Road Ahead
WMG Holdings Bhd. has certainly set a positive tone for its new financial year. The strong rebound and strategic initiatives suggest a company on a path of renewed growth. However, like any investment, it’s crucial for retail investors to conduct their own thorough due diligence and consider the broader market environment.
What are your thoughts on WMG Holdings Bhd.’s Q1 FY2026 performance? Do you believe the company can maintain this growth momentum and successfully execute its ambitious development plans in the coming quarters?
Share your insights in the comments section below! We love hearing from our community.
Stay tuned for more analyses of Malaysian companies and market trends. You might also be interested in our recent deep dive into The Outlook for Malaysian Property Market in 2025 or Understanding Financial Statements: A Guide for Retail Investors.
