KUALA LUMPUR: Saliran Group Bhd's net profit dropped to RM1.48 million in the fourth quarter ended Dec 31, 2025 (Q4 FY25), down 60.2 per cent from RM3.72 million in the same period the previous year.
The company said the lower earnings were attributable to lower gross profit margin due to higher exposure to lower-margin products, pricing adjustments, increased interest expenses to finance higher inventory levels, higher impairment losses on trade receivables and impairment loss on other investments.
Revenue for the quarter rose 45.6 per cent to RM139.14 million from RM95.57 million in the corresponding period in FY24 supported by higher sales orders from local customers, with domestic revenue contribution strengthening to 93.50 per cent during the quarter.
For the financial year ended Dec 31, 2025 (FY25), the company logged a net profit of RM10.25 million, down from RM13.2 million a year ago due to a one-off listing expenses of RM690,000 incurred during the period.
Revenue rose to RM486.06 million from RM344.52 million in FY24.
As at Dec 31, the company's total equity increased to RM73.67 million, up from RM43.44 million a year earlier, supported by proceeds from initial public offering (IPO) and retained earnings growth.
Net assets per share strengthened to 19 sen, compared to 14 sen previously.
As part of Saliran's IPO utilisation plan, RM14.38 million of the RM21.71 million gross proceeds have been utilised as at Dec 31, primarily for working capital, partial repayment of bank borrowings, machinery acquisition and initial steps towards establishing a sales office in Indonesia.
Executive chairman Liaw Choon Wei said the company delivered steady revenue growth despite margin pressures in the final quarter.
"Our strong domestic presence, disciplined working capital management and strengthened balance sheet position us well to navigate macroeconomic uncertainties while capturing opportunities arising from infrastructure, industrial and energy-related projects," he added.
Saliran's share price closed unchanged at 23 sen, valuing the company at RM86.15 million.