Back 09 Jul 2025

MSM International FY2025: Net Profit Jumps to RM11.1 Million Despite Revenue Dip, Driven by OEM Strength and Strategic Diversification

Link: https://links.sgx.com/1.0.0/corporate-announcements/POZMH3JFS9VVANJY/0a224553322b710b07dd040983ed3dd1dd6f89e1291691736ac8d78eeda7eb52

Summary:

  • 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.

  • 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.

  • 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.

  • 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.

  • The Group recognised a RM4.5 million fair value loss on its remaining shares in Cosmos Technology, which partially offset disposal gains.

  • Net asset value per share increased to RM0.45, up from RM0.42 last year, reflecting improved retained earnings.

  • Cash and bank balances rose to RM24.3 million, from RM18.5 million a year ago, strengthening the Group’s liquidity position.

  • Looking ahead, MSM expects to benefit from power grid upgrades, EV charging infrastructure, water and data centre projects, as well as healthcare spending.

  • 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.