Wawasan Dengkil Holdings Berhad Navigates Growth in Its First Year as a Listed Entity: A Deep Dive into Q4 FY2025 Results
Greetings, fellow investors and market enthusiasts! Today, we’re taking a closer look at the unaudited interim financial report for the fourth quarter ended 30 June 2025 from Wawasan Dengkil Holdings Berhad (WDHB). This report marks a significant milestone as it covers the first full financial year since the company’s debut on the ACE Market of Bursa Malaysia Securities Berhad on 25 March 2025.
The report paints a picture of a company actively establishing its footing in the public market, showcasing a robust full-year profit despite facing initial listing expenses. With a substantial unbilled order book, WDHB appears geared to sustain its momentum. Let’s dissect the key figures and strategic directions that define this crucial period.
Financial Performance Overview: A Year of Growth Amidst New Beginnings
Wawasan Dengkil Holdings Berhad has delivered a commendable performance in its inaugural year as a listed entity, demonstrating resilience and strategic execution. For the fourth quarter ended 30 June 2025, the Group recorded a revenue of RM45.94 million. While direct quarter-on-quarter comparisons to the same period last year are not available due to the company’s recent listing, we can assess its performance against the preceding quarter and its cumulative year-to-date figures.
Q4 FY2025 (Current Quarter)
Revenue: RM45.94 million
Gross Profit: RM7.53 million
Profit Before Tax (PBT): RM3.95 million
Profit After Tax (PAT): RM2.35 million
Basic and Diluted Earnings Per Share: 0.43 sen
Gross Profit Margin: 16.39%
PBT Margin: 8.60%
PAT Margin: 5.10%
Cumulative Year-to-Date FY2025 vs. FY2024
Revenue FY2025: RM180.62 million (FY2024: RM188.54 million)
Gross Profit FY2025: RM27.31 million (FY2024: RM26.61 million)
PBT FY2025: RM15.21 million (FY2024: RM15.69 million)
PAT FY2025: RM10.52 million (FY2024: RM11.32 million)
Basic and Diluted EPS FY2025: 1.95 sen (FY2024: 2.10 sen)
Gross Profit Margin FY2025: 15.12% (FY2024: 14.11%)
PBT Margin FY2025: 8.42% (FY2024: 8.32%)
PAT Margin FY2025: 5.82% (FY2024: 6.01%)
Analyzing the cumulative year-to-date performance, WDHB recorded a revenue of RM180.62 million for FY2025, a slight decrease from RM188.54 million in the preceding year. However, its Gross Profit for the cumulative quarter saw a positive increase to RM27.31 million from RM26.61 million in FY2024, leading to an improved Gross Profit Margin of 15.12%, up from 14.11%.
Profit Before Tax (PBT) and Profit After Tax (PAT) for the cumulative quarter were RM15.21 million and RM10.52 million respectively. It’s important to note that these figures include one-off non-recurring listing expenses of RM2.05 million. Without these expenses, the cumulative PBT and PAT would have been higher at RM17.26 million and RM12.57 million, reflecting a stronger operational performance.
Quarter-on-Quarter Momentum
Comparing the current fourth quarter (Q4 FY2025) with the preceding third quarter (Q3 FY2025) provides a clearer view of recent operational trends:
Q4 FY2025 (Current Quarter)
Revenue: RM45.94 million
Gross Profit: RM7.53 million
Profit Before Tax (PBT): RM3.95 million
Profit After Tax (PAT): RM2.35 million
Q3 FY2025 (Preceding Quarter)
Revenue: RM40.63 million
Gross Profit: RM6.15 million
PBT: RM2.93 million
PAT: RM2.13 million
The Group demonstrated strong sequential growth, with Q4 FY2025 revenue increasing by 13.08% to RM45.94 million from RM40.63 million in Q3 FY2025. This was primarily driven by higher construction activities in ongoing projects like the Sungai Long Project and Central Spine Road Project. Gross Profit surged by 22.55% to RM7.53 million, while PBT saw a significant 34.78% jump to RM3.95 million. Even after accounting for professional fees related to the listing, PAT increased by 10.35% to RM2.35 million, largely due to higher gross profit.
Segmental Contributions: Construction Leads the Way
Wawasan Dengkil’s revenue is primarily fueled by its construction services segment, which contributed 91.1% of total revenue for the current quarter and 90.0% for the cumulative quarter. The slight increase in the construction segment’s contribution during the current quarter was attributed to the completion of existing projects. The Group’s other segments, trading of construction materials and hiring of machineries and commercial vehicles, also played their part.
The Gross Profit margin saw an improvement in the fourth quarter, reaching 16.39% compared to the cumulative quarter’s 15.12%. This was largely due to lower depreciation expenses in the hiring segment, as many commercial vehicles are now fully depreciated, leading to higher margins even with consistent rental rates. Additionally, the construction segment also contributed to a higher GP margin due to the completion of the Cybersouth Avaland Project during the quarter.
Financial Position: Strengthening the Balance Sheet
As at 30 June 2025, WDHB’s financial position shows an increase in total assets to RM208.18 million from RM173.12 million a year ago. Total equity significantly increased to RM102.57 million from RM66.37 million, reflecting the impact of the IPO proceeds. Net assets per share stood at RM0.19 as at 30 June 2025.
Current assets grew substantially to RM145.20 million from RM104.30 million, largely driven by increases in trade receivables, contract assets, and cash and bank balances. This indicates a healthy liquidity position and active project management. Conversely, total liabilities saw a slight reduction to RM105.61 million from RM106.75 million, with non-current lease liabilities significantly decreasing, demonstrating effective debt management.
Key Balance Sheet Figures (as at 30 June)
| Item | 2025 (RM’000) | 2024 (RM’000) |
|---|---|---|
| Total Non-current assets | 62,985 | 68,820 |
| Total Current assets | 145,198 | 104,303 |
| TOTAL ASSETS | 208,183 | 173,123 |
| Total Equity | 102,570 | 66,373 |
| Total Non-current liabilities | 20,704 | 31,675 |
| Total Current liabilities | 84,909 | 75,075 |
| TOTAL LIABILITIES | 105,613 | 106,750 |
| TOTAL EQUITY AND LIABILITIES | 208,183 | 173,123 |
Cash Flow and IPO Proceeds Utilisation
The Group’s cash and cash equivalents surged to RM22.18 million at the end of the financial year, a significant increase from RM6.52 million in the previous year. Net cash generated from operating activities for the year-to-date was RM2.96 million, compared to RM14.24 million in the preceding year, impacted by changes in working capital related to project movements.
A crucial aspect of this report is the utilisation of the RM27.01 million gross proceeds from its IPO. As at 30 June 2025, RM12.26 million has been utilised, with RM4.00 million fully allocated to listing expenses. The remaining funds are earmarked for project working capital, purchase of machineries, repayment of bank borrowings, and office renovations, demonstrating a clear plan for strengthening operations and reducing financial leverage.
Prospects and Strategic Outlook: Building for the Future
Wawasan Dengkil Holdings Berhad’s outlook appears promising, buoyed by supportive government policies and the company’s strategic initiatives. The Malaysian government’s Budget 2025, with an allocation of RM86.00 billion for development expenditure, is expected to be a significant driver for the local construction industry, a sector in which WDHB is a key player.
The Group currently manages 13 ongoing construction projects, boasting a healthy unbilled contract value (order book) of RM361.15 million as at 30 June 2025. This robust order book is expected to sustain the company’s earnings and cash flow over the next two to three financial years, with the Sungai Long Project alone contributing RM116.83 million, expected to be realised over the next five financial years.
Strategically, WDHB aims to expand its footprint in civil engineering services, particularly focusing on property development, highways, and urban rail construction projects. In line with the national energy transition agenda, the company is also actively participating in tenders for infrastructure works related to solar farms, indicating a forward-thinking approach to diversify its project portfolio and tap into emerging opportunities in renewable energy infrastructure. Leveraging its diversified customer base, WDHB is well-positioned to secure more projects in the coming year.
Key Growth Drivers & Strategies
- Government-led infrastructure development (Budget 2025).
- Strong existing order book providing earnings visibility.
- Expansion into civil engineering services for property development and transport infrastructure.
- Participation in solar farm-related infrastructure works, aligning with the National Energy Transition Roadmap.
- Leveraging a diversified customer base to secure new projects.
Summary and Investment Recommendations
In summary, Wawasan Dengkil Holdings Berhad has delivered a solid performance in its fourth quarter and first full financial year as a listed company. Despite the one-off listing expenses impacting reported profits, the underlying operational strength, evidenced by increased Gross Profit margins and robust project activities, is encouraging. The substantial unbilled order book and strategic expansion plans into civil engineering and renewable energy infrastructure position the Group for continued growth.
While the company demonstrates promising prospects, potential investors should consider several key factors as they evaluate WDHB’s future trajectory. These include the competitive landscape of the construction sector, the timely execution of its extensive order book, and its ability to successfully secure new projects in its targeted expansion areas. The utilisation of IPO proceeds, particularly for project working capital and debt reduction, will also be critical to monitor for sustained financial health.
Key watch points for investors considering Wawasan Dengkil Holdings Berhad include:
- Project Execution and Order Book Realisation: The successful and timely completion of current projects and the conversion of the unbilled order book into revenue will be crucial.
- Competition in the Construction Sector: The ability to secure new contracts amidst a competitive environment in civil engineering services.
- Adaptation to New Segments: Success in expanding into new areas like solar farm infrastructure, requiring specialized expertise and resources.
- Effective Capital Management: Prudent management and utilisation of remaining IPO proceeds for planned growth initiatives.
- Market Conditions and Economic Outlook: Overall economic stability and government spending on infrastructure will continue to influence demand for construction services.
Overall, Wawasan Dengkil Holdings Berhad is off to a dynamic start as a listed entity. Its strategic focus and a healthy pipeline of projects suggest a company poised for further development in Malaysia’s infrastructure landscape.
What are your thoughts on Wawasan Dengkil Holdings Berhad’s performance and future prospects? Do you believe the company can effectively capitalise on the government’s development expenditure and its expansion into new areas like renewable energy infrastructure? Share your views and insights in the comments section below!
