Greetings, fellow investors and market watchers!
Today, we’re diving into the latest financial pulse of Oceancash Pacific Berhad, a company deeply involved in the hygiene and insulation sectors. They’ve just released their unaudited interim financial report for the second quarter ended 30 June 2025. This report offers a crucial glimpse into the company’s operational and financial health amid evolving market conditions.
While Oceancash Pacific continues its journey, this latest quarter highlights a challenging period, marked by a decline in revenue and a swing from profit to a net loss both for the quarter and year-to-date. The report signals areas where the company faced headwinds, though it also expresses a forward-looking perspective on navigating 2025. Let’s break down the numbers to understand the full picture.
Q2 2025 Performance Overview: A Challenging Quarter
Oceancash Pacific Berhad’s performance in the second quarter of 2025 saw a noticeable contraction compared to the same period last year and the preceding quarter. Both revenue and profitability faced downward pressure, reflecting a tough operating environment.
Revenue Dip and Shift to Loss
For the individual quarter ended 30 June 2025, the Group reported a revenue of RM16,873,000, a 10.02% decrease from RM18,752,000 in the second quarter of 2024. This was largely attributed to lower sales across both the hygiene and insulation divisions.
The company recorded a net loss of RM972,000 for the quarter, deepening from a net loss of RM658,000 in the corresponding quarter of the previous year. This translates to a basic loss per share of 0.37 sen, compared to 0.25 sen in Q2 2024.
Individual Quarter (Q2 2025)
- Revenue: RM16,873,000
- Net Loss: RM972,000
- Basic Loss per Share: 0.37 sen
Individual Quarter (Q2 2024)
- Revenue: RM18,752,000
- Net Loss: RM658,000
- Basic Loss per Share: 0.25 sen
When looking at the cumulative performance for the first half of 2025 (year-to-date), the trend continued. Revenue for the six months ended 30 June 2025 stood at RM34,769,000, a 10.00% reduction from RM38,633,000 in the first half of 2024.
Cumulative Quarter (H1 2025)
- Revenue: RM34,769,000
- Net Loss: RM1,257,000
- Basic Loss per Share: 0.48 sen
Cumulative Quarter (H1 2024)
- Revenue: RM38,633,000
- Net Profit: RM128,000
- Basic Earnings per Share: 0.05 sen
The Group registered a net loss of RM1,257,000 for the first half of 2025, a significant swing from a net profit of RM128,000 in the same period last year. This change was primarily driven by lower revenue and higher depreciation charges, resulting in a basic loss per share of 0.48 sen compared to earnings per share of 0.05 sen previously.
Diving Deeper: Segmental and Financial Health
Segmental Performance
The report provides a detailed look into the performance of its key business segments: Hygiene and Insulation. For the year-to-date period ended 30 June 2025, the Hygiene segment recorded revenue of RM18,869,000, while the Insulation segment contributed RM15,900,000. The Hygiene segment reported a segment loss of RM769,000, while Insulation showed a segment profit of RM221,000. This contrasts with the prior year’s performance where Insulation was a stronger profit contributor.
Financial Position
As at 30 June 2025, the Group’s financial position remained robust despite the operational challenges. Total assets stood at RM136,758,000, a slight decrease from RM142,804,000 at the end of December 2024. Total equity decreased marginally to RM117,159,000 from RM119,417,000, leading to a net asset per ordinary share of 44.92 sen, down from 45.79 sen.
The Group also managed its liabilities effectively, with total liabilities decreasing to RM19,599,000 as at 30 June 2025 from RM23,387,000 as at 31 December 2024, indicating a reduction in both non-current and current borrowings and lease liabilities.
Key Balance Sheet Figures
| Indicator | As at 30.06.2025 (RM’000) | As at 31.12.2024 (RM’000) | Change (RM’000) | Percentage Change |
|---|---|---|---|---|
| Total Assets | 136,758 | 142,804 | (6,046) | -4.23% |
| Total Equity | 117,159 | 119,417 | (2,258) | -1.89% |
| Total Liabilities | 19,599 | 23,387 | (3,788) | -16.19% |
| Net Assets per Share (sen) | 44.92 | 45.79 | (0.87) | -1.90% |
Cash Flow Position
Cash flows from operating activities for the first half of 2025 remained positive at RM3,844,000, though lower than RM4,588,000 in the prior year. However, increased investment in property, plant and equipment, coupled with repayments of term loans and lease liabilities, led to a net decrease in cash and cash equivalents of RM2,390,000 for the period, resulting in cash and bank balances of RM17,151,000 at the end of the period.
Risks and Prospects for Oceancash Pacific
The report acknowledges the prevailing market challenges that have impacted performance. The decrease in revenue from both the hygiene and insulation divisions signals a softer demand environment or increased competition. Higher depreciation charges also weighed on profitability, suggesting recent capital expenditures are now fully reflecting in the income statement.
The disproportionate effective tax rate, partly due to the tax-off against reinvestment allowance and the recording of losses by two subsidiary companies, indicates complexities in managing tax liabilities in the current climate. Furthermore, foreign currency translation losses highlight the exposure to exchange rate fluctuations, which can impact the Group’s bottom line.
Despite these headwinds, Oceancash Pacific Berhad remains cautiously optimistic about the future. The management states that, “Barring unforeseen circumstances, the Group is well-positioned to face challenges and pursue opportunities in 2025.” This suggests that while the operating environment is tough, the company believes its underlying strategy and assets will enable it to navigate these challenges. This might imply efforts to optimize operations, control costs, or explore new market niches, although specific strategies are not detailed in this interim report.
Summary and Investment Recommendations
Oceancash Pacific Berhad’s Q2 2025 report paints a picture of a company currently navigating a challenging business landscape. The decline in revenue and the shift to a net loss for both the quarter and year-to-date are clear indicators of the difficulties faced in the hygiene and insulation markets. However, the balance sheet shows some resilience, with a managed reduction in total liabilities, suggesting a prudent approach to financial management.
Key points from this report include:
- Significant revenue decline in both the second quarter and first half of 2025 compared to the previous year.
- A swing from a net profit to a net loss for the year-to-date, primarily due to lower sales and increased depreciation.
- Lower cash generation from operating activities and a net decrease in cash and cash equivalents for the period.
- No dividends declared for the current quarter.
- Management maintains that the Group is “well-positioned to face challenges and pursue opportunities in 2025”, indicating a forward-looking and resilient stance.
For Malaysian retail investors, this report serves as a reminder to consider the broader economic environment and sector-specific challenges impacting companies like Oceancash Pacific. It’s crucial to look beyond just the top-line numbers and understand the underlying factors driving performance.
Oceancash Pacific Berhad is certainly in a period that demands close observation. While the latest figures present a challenging narrative, the company’s expressed confidence in being “well-positioned” hints at efforts to stabilize and potentially improve its trajectory moving forward.
What are your thoughts on Oceancash Pacific’s Q2 2025 performance? Do you believe the company can turn the tide in the coming quarters? Share your perspectives in the comments below!
