Hello, investors and market watchers! We’re diving into the latest financial performance of MINOX INTERNATIONAL GROUP BERHAD (Minox), a key player in the industrial sector. The unaudited interim financial report for the quarter and year-to-date ended 30 June 2025 has just been released, and it paints a picture of resilient growth amidst a dynamic market landscape.
The report highlights impressive progress, particularly in its profit before tax (PBT) which soared by 74.0% for the current quarter compared to the same period last year, and an even more remarkable 170.9% for the year-to-date. This growth, coupled with a first interim single-tier dividend of 0.25 sen per ordinary share paid earlier in April 2025 (amounting to RM0.90 million), signals Minox’s strong operational performance and commitment to shareholder returns. Let’s break down the key takeaways from this report.
Core Data Highlights
Stellar Profit Growth for Q2 2025
Minox delivered a commendable performance in the second quarter of 2025. The Group recorded a revenue of RM11.40 million, a marginal increase of 3.4% from RM11.02 million in the corresponding quarter of the previous year. This modest revenue growth, however, was accompanied by a significant boost in profitability.
Q2 2025
Revenue: RM11.40 million
Profit Before Tax (PBT): RM1.67 million
Earnings Per Share (EPS): 0.4 sen
Q2 2024
Revenue: RM11.02 million
Profit Before Tax (PBT): RM0.96 million
Earnings Per Share (EPS): 0.2 sen
Profit Before Tax (PBT) for the current quarter surged by 74.0% to RM1.67 million, up from RM0.96 million a year ago. This impressive jump was primarily driven by higher revenue contributions, particularly from the Food & Beverage (F&B) sector in key markets like Indonesia and Singapore. The recovery in F&B sector orders and project deliveries, supported by more stable market conditions, played a crucial role. Furthermore, lower administrative expenses, due to the absence of withholding tax on a foreign dividend and the full depreciation of a property, plant, and equipment item in the corresponding quarter last year, also contributed significantly to the improved profitability.
Half-Year Performance Sees Robust Gains
Looking at the year-to-date performance, Minox has maintained a strong upward trajectory, demonstrating consistent growth across its operations.
YTD 2025
Revenue: RM22.71 million
Profit Before Tax (PBT): RM2.79 million
Earnings Per Share (EPS): 0.6 sen
YTD 2024
Revenue: RM19.34 million
Profit Before Tax (PBT): RM1.03 million
Earnings Per Share (EPS): 0.2 sen
For the first half of 2025, Minox reported a revenue of RM22.71 million, an increase of 17.4% compared to RM19.34 million in the same period last year. The PBT for the year-to-date reached RM2.79 million, an astounding 170.9% increase from RM1.03 million previously. Similar to the quarterly performance, this growth was largely fueled by strong F&B sector demand in Singapore and Indonesia and prudent cost management resulting in lower administrative expenses.
Quarter-on-Quarter Momentum
Comparing the current quarter (Q2 2025) with the immediate preceding quarter (Q1 2025), Minox shows continued positive momentum, especially in its profitability.
Q2 2025
Revenue: RM11.40 million
Profit Before Tax (PBT): RM1.67 million
Q1 2025
Revenue: RM11.31 million
Profit Before Tax (PBT): RM1.12 million
Revenue saw a slight increase of 0.8% to RM11.40 million. This was driven by higher contributions from the Pharmaceutical and Semiconductor sectors in the Singapore and Malaysia markets. While the F&B market in Singapore saw a slight dip due to the completion of major installations in Q1, the diversification of revenue streams helped maintain overall growth. PBT for the current quarter significantly rose by 49.1% to RM1.67 million, primarily due to higher revenue and lower administrative expenses as the preceding quarter included higher staff-related costs like bonus payments and the annual dinner.
Segmental Performance: F&B Leads the Charge
A deeper dive into Minox’s revenue segmentation reveals interesting trends:
Revenue by Geographical Markets (Year-to-Date Ended 30 June)
| Region | YTD 2025 (RM’000) | YTD 2024 (RM’000) | Change (%) |
|---|---|---|---|
| Malaysia | 7,132 | 7,614 | -6.4% |
| Singapore | 6,052 | 3,030 | +99.7% |
| Thailand | 1,830 | 1,684 | +8.7% |
| Indonesia | 6,506 | 5,167 | +25.9% |
| Others | 1,187 | 1,844 | -35.7% |
| Total | 22,707 | 19,339 | +17.4% |
Singapore and Indonesia were significant growth drivers, showcasing strong increases in revenue, particularly for the year-to-date. This highlights Minox’s successful penetration and growth strategies in these crucial regional markets.
Revenue by Industries (Year-to-Date Ended 30 June)
| Industry | YTD 2025 (RM’000) | YTD 2024 (RM’000) | Change (%) |
|---|---|---|---|
| Food & Beverage (F&B) | 20,806 | 16,455 | +26.4% |
| Pharmaceutical | 1,099 | 1,107 | -0.7% |
| Semiconductor | 802 | 1,777 | -54.9% |
| Total | 22,707 | 19,339 | +17.4% |
The F&B sector continues to be Minox’s powerhouse, contributing the lion’s share of revenue and demonstrating robust growth. While the Semiconductor sector experienced a notable decline year-to-date, the strength in F&B and stable Pharmaceutical segment helped offset this.
Financial Health Check
Minox’s balance sheet remains solid. As at 30 June 2025, total assets stood at RM107.02 million (slightly down from RM108.28 million at 31 December 2024), with total equity at RM77.80 million. Net assets per ordinary share remained stable at RM0.21. The Group’s total borrowings saw a slight decrease from RM23.83 million at the end of 2024 to RM23.17 million.
The cash flow statement reflects a significant improvement in operational efficiency. Net cash generated from operating activities for the year-to-date was a strong RM4.27 million, a remarkable turnaround from a net cash used of RM0.34 million in the same period last year. This led to healthy cash and cash equivalents of RM21.20 million as at 30 June 2025.
Risk and Prospect Analysis
Navigating Global Headwinds and Regional Opportunities
Minox remains cautiously optimistic about its outlook for 2025. The global operating environment is increasingly complex, marked by geopolitical tensions, evolving trade policies, and recent tariff measures announced by the United States. While these factors heighten global market uncertainty and impact supply chains, Minox notes minimal operational disruption as it does not engage in direct trade with the US.
The global stainless-steel fittings and valves market, which Minox operates in, was valued at USD 1,323.14 million in 2023 and is projected to reach USD 1,750.17 million by 2029, growing at a compound annual growth rate of 4.8% from 2024 to 2029. This growth is primarily fueled by increasing demand from industries such as oil and gas, chemical processing, water treatment, pharmaceuticals, and particularly, food and beverage, all of which rely on stainless-steel components for their corrosion resistance, durability, and reliability.
However, the industry faces the challenge of raw material price instability. Manufacturers must develop robust cost management and risk mitigation strategies to adapt to fluctuating costs while maintaining profitability and competitiveness.
On the domestic front, Bank Negara Malaysia (BNM) projects the Malaysian economy to expand between 4% and 4.8% in 2025. This positive economic outlook is beneficial for the sanitary valves and fittings industry, driven by growth in the F&B manufacturing sector, improved pharmaceutical demand, and technological advancements stimulating semiconductor demand. The increasing affluence of Malaysians, leading to higher consumer spending on food, pharmaceuticals, and electronics, further bodes well for Minox’s business.
Barring unforeseen circumstances, Minox expects to deliver a satisfactory financial performance for the current financial year, underpinned by these positive regional trends and its strategic positioning.
Strategic Use of IPO Proceeds
Minox provided an update on the utilisation of its IPO proceeds of RM22.50 million. The company has made progress in deploying these funds for product development, warehouse construction, and repayment of bank borrowings. Notably, the timeframe for the construction of Warehouse 4 has been extended by an additional 12 months, up to 36 months from the date of listing, due to the need for more time to obtain building plan approval from the Subang Jaya City Council after receiving planning permission in June 2025.
Summary and Investment Recommendations
Minox International Group Berhad has delivered a strong second quarter and half-year performance for 2025, characterized by significant profit growth driven by robust demand in the Food & Beverage sector, particularly in Indonesia and Singapore, alongside effective cost management. The Group’s strategic focus on key growth markets and industries, coupled with a generally positive regional economic outlook, positions it well for continued performance.
While the overall picture is positive, potential investors should remain mindful of the following key risk points:
- Global geopolitical tensions and evolving trade policies, though Minox currently has minimal direct exposure to US tariffs.
- The inherent global market uncertainty that can impact supply chains and investor confidence across industries.
- The volatility of raw material prices, particularly in the stainless-steel market, which can pressure manufacturing costs and profitability.
- The ongoing necessity for Minox to implement robust cost management and risk mitigation strategies to navigate these external factors effectively.
Minox’s prudent financial management and strategic capacity expansion, such as the upcoming Warehouse 4, suggest a forward-looking approach to sustain its growth trajectory. The company’s ability to adapt to market dynamics and leverage regional opportunities will be key to its future success.
Minox has demonstrated resilience and strategic agility in Q2 2025. While external challenges persist, the company’s focus on key growth sectors and proactive management of expenses position it for continued performance.
What are your thoughts on Minox’s ability to sustain this growth trajectory amidst global economic fluctuations? Share your insights in the comments below!
