Swang Chai Chuan (2321) H1 2025 earnings summary

Executive summary

• H1 2025 revenue was RM467.849m, down 0.83% YoY; profit rose 45.5% to RM20.798m, with EPS increasing to 2.08 sen from 1.43 sen.

• Gross margin improved to 12.9% from 11.8%; higher other income, including exchange gains, supported earnings growth.

• No interim dividend was recommended.

Financial highlights

• Gross profit rose to RM60.506m from RM55.505m; profit before tax increased to RM27.366m from RM18.660m.

• Other income was RM6.410m versus RM1.086m, including a net exchange gain of RM4.752m versus RM0.138m.

• Selling and distribution expenses rose to RM27.393m from RM24.233m; administrative and other operating expenses fell to RM11.159m from RM12.884m.

• Finance costs increased to RM1.032m from RM0.839m; income tax expense rose to RM6.568m from RM4.377m.

• Net cash from operating activities was RM16.137m versus RM16.768m; cash and cash equivalents were RM48.220m at 30 June 2025.

Outlook and guidance

• Plans focus on pursuing business opportunities, strengthening core capabilities and applying cost controls to protect margins and competitiveness amid high inflation.

• Malaysian infrastructure included 9 owned and 3 leased warehouses with ~32,690 m³ capacity, supported by 168 self-operated logistics vehicles.