Swang Chai Chuan (2321) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 2.2% YoY to RM932.9m; profit attributable to owners increased to RM33.2m from RM28.1m, and EPS rose to 3.32 sen from 2.81 sen.

• Gross margin improved to 13.1% from 12.4%, supporting net margin growth to 3.6% from 3.1%.

Financial highlights

• Revenue was RM932.9m versus RM913.0m; gross profit was RM121.9m versus RM113.5m, and profit before tax was RM41.8m versus RM36.6m.

• Profit for the year was RM33.2m versus RM28.1m; total comprehensive income was RM32.7m versus RM28.9m.

• Selling and distribution expenses rose 9.1% to RM57.7m; administrative and other operating expenses fell 6.4% to RM24.2m.

• Finance costs increased 83.9% to RM2.4m, mainly due to interest on a new term loan used to purchase land.

Outlook and guidance

• A new warehouse in the northern region is planned on acquired land, with completion expected in H2 2026.

• Unutilised listing proceeds of HK$46.0m are expected to be used by FY2026, mainly for distribution and sales capabilities and own-products development.

• Management plans to expand storage and logistics capacity, source new principals and improve product mix.