Matang Berhad’s Q4 FY2025 Report: A Deep Dive into Growth and Future Prospects
Hello, fellow investors and market enthusiasts! Today, we’re taking a closer look at Matang Berhad’s latest unaudited condensed consolidated financial statements for the fourth quarter and full financial year ended 30 June 2025. This report offers valuable insights into the company’s performance, strategic direction, and the challenges it navigates within the plantation sector. From impressive full-year profit growth to the strategic utilisation of its private placement funds, there’s a lot to unpack. Let’s delve into the numbers and see what Matang Berhad has been up to!
Core Data Highlights: Navigating a Dynamic Market
Matang Berhad, primarily involved in oil palm and durian cultivation, has presented a mixed but ultimately positive picture for the financial year. While the fourth quarter saw some shifts, the full-year performance truly stands out.
Quarterly Performance (Q4 FY2025 vs. Q4 FY2024)
For the quarter ended 30 June 2025, Matang Berhad recorded a slight dip in revenue, but managed to boost its profit before tax thanks to diligent cost management.
Current Quarter (Q4 FY2025)
Revenue: RM4.78 million
Gross Profit: RM3.49 million
Profit Before Tax (PBT): RM1.57 million
Profit for the Period: RM0.81 million
Basic Earnings Per Share: 0.03 sen
Previous Year Corresponding Quarter (Q4 FY2024)
Revenue: RM4.90 million
Gross Profit: RM3.42 million
Profit Before Tax (PBT): RM1.46 million
Profit for the Period: RM1.20 million
Basic Earnings Per Share: 0.05 sen
Revenue for the quarter saw a marginal decrease of approximately 2.4% (RM0.12 million). However, the Group’s gross profit impressively rose by 2.0% (RM0.07 million) due to a lower cost of sales. More notably, Matang Berhad’s PBT for the quarter increased by 7.5% (RM0.11 million), primarily driven by reduced administrative expenses. Despite this, profit for the period was lower mainly due to higher tax expense.
Full Financial Year Performance (FY2025 vs. FY2024)
Looking at the bigger picture, Matang Berhad delivered a truly robust performance for the entire financial year.
Current Year (FY2025)
Revenue: RM21.58 million
Gross Profit: RM15.41 million
Profit Before Tax (PBT): RM9.23 million
Profit for the Period: RM5.96 million
Basic Earnings Per Share: 0.25 sen
Previous Year (FY2024)
Revenue: RM16.88 million
Gross Profit: RM10.66 million
Profit Before Tax (PBT): RM4.95 million
Profit for the Period: RM3.21 million
Basic Earnings Per Share: 0.13 sen
The full financial year paints a very positive picture. Matang Berhad’s revenue soared by 27.8% (RM4.70 million), while gross profit jumped by an impressive 44.5% (RM4.75 million). Even more striking is the PBT, which surged by 86.8% (RM4.28 million), and profit for the period, which increased by a substantial 85.7% (RM2.75 million). This translated to a near doubling of basic earnings per share, from 0.13 sen to 0.25 sen.
Operational Drivers: Oil Palm and Durian
Matang Berhad’s revenue is primarily derived from its oil palm and durian plantations. For the current quarter, oil palm Fresh Fruit Bunches (FFB) sales contributed RM4.72 million, while durian sales accounted for RM0.06 million.
- Oil Palm Performance: Despite a 4.3% drop in FFB production to 5,243 tonnes, the average FFB price realised increased from RM849 per tonne in the previous year’s corresponding quarter to RM901 per tonne this quarter, marking a 6.1% rise. This price increase helped to offset the lower production volume, leading to a 1.5% increase in oil palm revenue.
- Durian Performance: The durian segment saw a decrease in revenue, generating RM0.06 million compared to RM0.25 million in the preceding year’s corresponding quarter. This fluctuation in durian harvest and sales can be typical for such crops.
Financial Health Snapshot
As of 30 June 2025, Matang Berhad’s financial position remains sound.
As at 30 June 2025
Total Assets: RM254.89 million
Total Equity: RM248.32 million
Cash, Bank Balances & Short-Term Funds: RM76.72 million
Net Assets Per Share: RM0.10
As at 30 June 2024
Total Assets: RM251.79 million
Total Equity: RM246.20 million
Cash, Bank Balances & Short-Term Funds: RM72.43 million
Net Assets Per Share: RM0.10
The company maintains a strong balance sheet with a slight increase in total assets and equity year-on-year. Notably, cash and bank balances, along with short-term funds, increased by RM4.29 million, reflecting a healthy liquidity position. The Group continues to have no borrowings or debt securities, which is a significant positive for financial stability.
Cash Flow from Operations
Matang Berhad’s operating activities generated RM9.44 million in net cash for the financial year ended 30 June 2025, an improvement from RM7.68 million in the previous year. This indicates strong operational efficiency and cash generation capabilities. Significant cash was used in investing activities, largely due to placement of deposits with licensed banks and purchase of property, plant, and equipment, aligning with strategic growth and asset management.
Utilisation of Private Placement Proceeds
The company has been actively deploying funds from its Private Placement exercises (PP 2021 and PP 2022) to support its growth initiatives. For PP 2021, RM0.69 million was used as working capital for the durian plantation in the current quarter, with a balance of RM8.02 million remaining for future working capital or acquisitions. For PP 2022, the full balance of RM14.02 million is earmarked for working capital requirements, including development and operational expenditures for oil palm and durian plantations, and critically, for downstream durian activities such as developing processing facilities.
Risk and Prospect Analysis: Navigating CPO Volatility and Strategic Growth
The plantation sector is inherently exposed to commodity price fluctuations and weather conditions. Matang Berhad’s outlook is closely tied to Crude Palm Oil (CPO) prices and its strategic expansion into durian cultivation.
CPO Market Outlook
The average CPO price for the current quarter was approximately RM4,056.30 per tonne, slightly lower than RM4,723.80 per tonne in the immediately preceding quarter. Industry analysts like Public Investment Bank Bhd maintain a “neutral” outlook on the plantation sector, projecting CPO prices to remain stable within the RM4,000 to RM4,300 per tonne range for the second half of 2025. This is supported by stabilised inventory and improved export momentum due to competitive pricing against soybean oil.
However, OCBC Global Markets Research & Strategy noted a slight risk of CPO prices averaging below their 2025 forecast of RM4,300 per tonne. The volatility in crude oil markets has also spilled into the vegetable oil sector, affecting CPO’s competitiveness as a biodiesel feedstock due to a widening palm oil – gas oil (POGP) spread.
Company Strategy and Future Direction
Matang Berhad continues to focus on enhancing the productivity and efficiency of its oil palm and durian plantations. The strategic allocation of private placement funds towards working capital, development, and operational expenditures for both crops, especially for initiating downstream durian activities, is a clear indication of the company’s commitment to long-term growth and value creation. Diversifying into durian processing could potentially mitigate risks associated with raw commodity price fluctuations and open new revenue streams.
The Group acknowledges that its quarterly results are subject to seasonal crop production patterns and weather conditions, a common factor in the agricultural industry. Through prudent management and strategic planning, Matang Berhad aims to navigate these inherent challenges.
Summary and Investment Recommendations
Matang Berhad has demonstrated resilience and strategic foresight in its latest financial report. While the fourth quarter presented some expected fluctuations, the full financial year showcases a commendable growth trajectory, particularly in profitability. The company’s focus on its core plantation business, coupled with its plans for durian downstream activities, positions it for future growth.
It’s important to remember that all investment decisions carry risks, and investors should conduct their own thorough due diligence before making any choices. This blog post is for informational purposes only and does not constitute investment advice.
Key risk points highlighted in the report and industry outlook include:
- Volatile Crude Palm Oil (CPO) prices, which are influenced by global market factors and supply-demand dynamics.
- Fluctuations in FFB production due to seasonal crop patterns and weather conditions.
- The interconnectedness of the vegetable oil sector with crude oil markets, which can affect CPO’s competitiveness as a biodiesel feedstock.
- Challenges in expanding durian operations and establishing downstream activities, requiring significant capital and market penetration efforts.
Matang Berhad’s latest report reflects a company with a strong foundation and a clear vision for the future, leveraging its core agricultural strengths while exploring new avenues like durian processing. The significant growth in full-year profitability, coupled with a healthy balance sheet and strategic deployment of funds, suggests a company actively building for sustained success. The management’s focus on cost control and strategic investments appears to be paying off.
What are your thoughts on Matang Berhad’s performance and prospects? Do you believe the company can maintain this growth momentum and successfully expand its durian downstream activities in the coming years? Share your insights in the comments section below – I’d love to hear your perspective!
Stay tuned for more in-depth analyses of Malaysian companies!
