Perstima’s Q1 FY2026: Revenue Surge Amidst Shifting Sands
Greetings, fellow investors! Today, we’re diving into the latest financial pulse of Perusahaan Sadur Timah Malaysia (Perstima) Berhad, a key player in the regional tinplate industry. The company has just released its first-quarter results for the financial year ending 30 June 2025 (Q1 FY2026), and there’s plenty to unpack. From a significant leap in revenue to a return to pre-tax profitability, the report paints a picture of dynamic change and strategic navigation. While the top-line growth is certainly impressive, it’s crucial to look beyond the surface to understand the underlying currents impacting the company’s performance across its multi-jurisdictional operations. Let’s dig in and see what this quarter tells us about Perstima’s journey!
Core Financial Highlights: A Robust Turnaround
Perstima’s Q1 FY2026 results show a remarkable turnaround, especially when compared to the same period last year. The group has significantly bolstered its revenue and shifted from a pre-tax loss to a profit, primarily driven by increased sales volume and improved profit margins.
Q1 FY2026 (April – June 2025) vs. Q1 FY2025 (April – June 2024)
The latest quarter saw a substantial boost in key financial indicators:
- Revenue: Surged by 68.6% to RM 371.1 million, up from RM 220.2 million.
- Gross Profit: A dramatic improvement from a loss of RM 8.6 million to a profit of RM 15.0 million.
- Profit Before Tax (PBT): Turned around from a loss of RM 7.8 million to a profit of RM 1.1 million, a swing of over 100%.
- Net Loss for the Period: Reduced significantly to RM 2.2 million from RM 8.7 million in the prior year.
- Basic Earnings per Share (EPS): Improved to a loss of 1.70 sen per share, from a loss of 6.70 sen per share.
This impressive year-on-year growth primarily stems from higher sales volume and better profit margins during the current quarter, despite lower selling prices.
Quarter-on-Quarter Performance: Building Momentum
Comparing the current quarter with the immediate preceding quarter (Q4 FY2025 ended March 2025) also reveals positive momentum:
Q1 FY2026 (Apr – Jun 2025)
| Metric | Amount (RM’000) |
|---|---|
| Revenue | 371,143 |
| Profit/(Loss) before tax | 1,147 |
Q4 FY2025 (Jan – Mar 2025)
| Metric | Amount (RM’000) |
|---|---|
| Revenue | 332,533 |
| Profit/(Loss) before tax | (7,894) |
The group’s revenue increased by 11.6% compared to the previous quarter, again driven by higher sales volume. The shift from a pre-tax loss of RM 7.9 million to a profit of RM 1.1 million quarter-on-quarter underscores the positive trajectory.
Segmental Performance: A Mixed Bag
Perstima’s operations span Malaysia, Vietnam, and the Philippines, each contributing uniquely to the overall performance. Let’s look at how each region fared in Q1 FY2026 compared to Q1 FY2025:
| Segment | Q1 FY2026 Revenue (RM’000) | Q1 FY2025 Revenue (RM’000) | Revenue Change (%) | Q1 FY2026 PBT (RM’000) | Q1 FY2025 PBT (RM’000) | PBT Change (%) |
|---|---|---|---|---|---|---|
| Malaysia | 195,095 | 119,410 | 63.4% | (4,190) | (439) | (>100)% (loss increase) |
| Vietnam | 113,574 | 71,724 | 58.3% | 11,243 | 5,341 | >100% (profit increase) |
| Philippines | 67,669 | 32,537 | >100% (107.9%) | (23,977) | (22,489) | (6.6)% (loss increase) |
- Malaysia: Revenue increased by 63.4% due to higher sales volume, despite lower selling prices. However, the Malaysian segment reported a larger loss before taxation of RM 4.2 million, primarily due to unrealized losses on amounts due from a subsidiary and revaluation of inventories to net realisable value.
- Vietnam: The subsidiary in Vietnam showed strong growth with revenue up 58.3% and profit before taxation more than doubling to RM 11.2 million. This was driven by higher sales volume, even though profit margins were slightly lower.
- Philippines: The Philippines segment achieved over 100% revenue growth, fueled by both higher sales volume and increased selling prices. Despite this, the loss before taxation widened slightly to RM 24.0 million, mainly due to unrealized losses on amounts due to the parent company, partially offset by a reversal on inventory revaluation and higher sales volume. The plant is still in transition, with sales expected to grow steadily.
Financial Health: Balance Sheet & Cash Flow
Perstima’s balance sheet as of 30 June 2025 indicates a slight contraction in total assets and equity compared to 31 March 2025 (the end of the previous financial year):
As at 30 June 2025
| Metric | Amount (RM’000) |
|---|---|
| Total Assets | 911,047 |
| Total Equity | 417,306 |
| Net Assets Per Share (RM) | 3.23 |
| Cash and Cash Equivalents | 113,331 |
As at 31 March 2025
| Metric | Amount (RM’000) |
|---|---|
| Total Assets | 935,294 |
| Total Equity | 441,458 |
| Net Assets Per Share (RM) | 3.42 |
| Cash and Cash Equivalents | 94,665 |
While Total Assets and Total Equity saw a slight dip, indicating some adjustments post-financial year-end, the cash and cash equivalents position significantly improved. The group ended the quarter with RM 113.3 million in cash, up from RM 94.7 million at the end of the last financial year.
Crucially, the cash flow from operating activities saw a substantial positive shift. For Q1 FY2026, Perstima generated RM 28.6 million in net cash from operations, a strong rebound from a net cash *used in* operations of RM 126.2 million for the entire FY2025. This indicates much healthier operational efficiency and working capital management.
Risks and Future Prospects: Navigating a Complex Landscape
The Board of Perstima acknowledges that the operating environment will remain challenging throughout the current financial year. Several factors are at play:
- Foreign Exchange Fluctuations: This remains a persistent concern for a company with multi-country operations, impacting costs and revenues.
- Global Tinplate Volatility: The imposition of tariffs by various countries, such as the USA, creates market uncertainty and can affect demand and pricing.
- Anti-Dumping Duties: The recent imposition of anti-dumping duties by the Royal Malaysian Customs Department on imported tinplate could, paradoxically, benefit Perstima’s local operations by reducing competition from foreign imports. This is a dynamic situation worth monitoring.
In response to these challenges, Perstima is adopting a proactive strategy:
- Leveraging Multi-Jurisdictional Presence: The diverse operations in Malaysia, Vietnam, and the Philippines are expected to help mitigate the volatility caused by international trade policies.
- Market Monitoring: Continuous monitoring of global and regional economic conditions, particularly supply and consumption patterns within the tinplate industry.
- Operational Excellence: Continued focus on product quality, intensified sales and marketing efforts, and a strong emphasis on improving production efficiencies and achieving cost savings.
These strategies are designed to ensure resilience and sustained performance in a complex global trade environment.
Summary and Investment Recommendations
Perstima’s Q1 FY2026 report presents a mixed yet overall encouraging picture. The group demonstrated strong revenue growth and a commendable return to pre-tax profitability, largely driven by higher sales volumes across its key markets, particularly Vietnam and the Philippines. The significant improvement in cash flow from operations is also a positive indicator of improved financial health.
However, the widening losses in Malaysia, attributed to unrealized losses and inventory revaluation, warrant closer attention. The Philippines segment, despite substantial revenue growth, also saw an increased loss, albeit with the promising note that the plant is still in its transition phase.
The company remains cautious about the future, highlighting ongoing challenges such as foreign exchange volatility and global tariff impacts on the tinplate industry. Nevertheless, its strategic focus on operational efficiency, product quality, market expansion, and leveraging its multi-country footprint positions it to navigate these headwinds.
Key risk points highlighted in the report include:
- Foreign exchange fluctuations impacting costs and revenues.
- Volatility in the tinplate industry due to international tariffs.
- Potential for continued losses in specific segments due to internal adjustments or market conditions.
Overall, Perstima has shown resilience and a strong operational turnaround in Q1 FY2026. While challenges persist, the proactive strategies and the positive shift in operational cash flow provide a foundation for cautious optimism.
What are your thoughts on Perstima’s latest performance? Do you believe their multi-jurisdictional strategy and focus on efficiency will be enough to sustain this positive momentum through the rest of the financial year? Share your insights and perspectives in the comments below!
For more detailed analysis on Malaysian companies, check out our other recent blog posts here.
