MSM International FY2025: Net Profit Jumps to RM11.1 Million Despite Revenue Dip, Driven by OEM Strength and Strategic Diversification
Summary:
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Net profit climbed to RM11.1 million in FY2025, a sharp rise from RM0.4 million in FY2024, mainly driven by a RM13.5 million gain from the disposal of a 21% stake in Cosmos Technology and a subsidiary.
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Revenue decreased by 9% to RM82.3 million, compared to RM90.3 million the year before, due largely to slower sales in the kitchen equipment and cleanroom projects.
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Gross profit margin improved to 26.3% from 22.4%, helped by a strategic focus on higher-margin projects and reduced exposure to low-margin contracts.
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OEM manufacturing segment posted a 5.4% growth to RM35.1 million, fuelled by stronger demand for electrical switchgear and components in energy, healthcare, and water treatment markets.
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The Group recognised a RM4.5 million fair value loss on its remaining shares in Cosmos Technology, which partially offset disposal gains.
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Net asset value per share increased to RM0.45, up from RM0.42 last year, reflecting improved retained earnings.
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Cash and bank balances rose to RM24.3 million, from RM18.5 million a year ago, strengthening the Group’s liquidity position.
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Looking ahead, MSM expects to benefit from power grid upgrades, EV charging infrastructure, water and data centre projects, as well as healthcare spending.
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Plans are in place to grow the foodservice segment by targeting B2B institutional kitchens, leveraging halal certification to penetrate new markets, and managing rising costs through improved procurement and efficiencies.