Executive Summary
SP International Holding Limited (1695.HK) delivered a robust QQ2 2025 performance anchored by a sharp year-over-year revenue surge and solid profitability. Revenue rose to MYR 72.74 million, up 150.1% YoY, supported by strong demand for coconut-based products and an expanding mix of coconut cream, milk, and associated consumer packaged foods. Gross profit reached MYR 15.07 million, yielding a gross margin of 20.72%, while EBITDA stood at MYR 8.64 million and operating income at MYR 8.94 million, translating to EBITDA and operating margins of roughly 11.87% and 12.28%, respectively. Net income was MYR 8.08 million with a net margin of 11.11% and an EPS of MYR 0.0074 for the quarter.
The balance sheet exhibits healthy liquidity, with a current ratio of 2.48 and a quick ratio of 1.44, underscoring the company’s ability to navigate near-term working capital needs. The cash conversion cycle extended to approximately 66.7 days driven by a longer inventory cycle (DIO ~49.7 days) while days sales outstanding (DSO) were ~34.2 days and days payable outstanding (DPO) ~17.1 days. Leverage remains limited, with a debt ratio of 13.3% and debt-to-capitalization at 15.5%, reflecting a conservative capital structure.
From a cash flow perspective, operating cash flow per share was MYR 0.00106, and free cash flow per share was negative MYR 0.00113, consistent with a working-capital-intensive, growth-oriented packaging and distribution business. The company did not declare a dividend in QQ2 2025 (dividend payout ratio 0). Valuation metrics imply the stock trades at modest multiples (P/S ~0.72x, P/E ~1.6x, EV/EBITDA ~7.4x), suggesting a potential gap between market price and the durable earnings power embedded in the current growth trajectory.
Note: There is no earnings call transcript provided for QQ2 2025 in the data source; as a result, transcript-based quotes are not available. The assessment relies on reported quarterly figures and near-term industry dynamics to form the forward view.
Key Performance Indicators
Key Insights
Revenue: MYR 72,740,832 for QQ2 2025, up 150.12% YoY; QoQ 0.00%. Gross Profit: MYR 15,071,472; Gross Margin: 20.72%.
Operating Profit (EBIT): MYR 8,936,188; Operating Margin: 12.28%; EBITDA: MYR 8,636,402; EBITDA Margin: 11.87%.
Net Income: MYR 8,081,592; Net Margin: 11.11%; Earnings Per Share (EPS): MYR 0.00740; Diluted EPS: MYR 0.00740; Weighted Avg Shares: 1,080,137,931.
Costs and Expenses: Total cost and expenses MYR 63,804,644; Cost of Revenue MYR 57,669,360; SG&A and Selling/General/Ad...
Financial Highlights
Revenue: MYR 72,740,832 for QQ2 2025, up 150.12% YoY; QoQ 0.00%. Gross Profit: MYR 15,071,472; Gross Margin: 20.72%.
Operating Profit (EBIT): MYR 8,936,188; Operating Margin: 12.28%; EBITDA: MYR 8,636,402; EBITDA Margin: 11.87%.
Net Income: MYR 8,081,592; Net Margin: 11.11%; Earnings Per Share (EPS): MYR 0.00740; Diluted EPS: MYR 0.00740; Weighted Avg Shares: 1,080,137,931.
Costs and Expenses: Total cost and expenses MYR 63,804,644; Cost of Revenue MYR 57,669,360; SG&A and Selling/General/Admin: MYR 10,326,716; Other expenses: MYR -4,191,432; Depreciation & Amortization: MYR 3,341,300.
Liquidity and Efficiency: Current Ratio 2.48; Quick Ratio 1.44; Cash Ratio 0.403. DSO 34.21 days; DIO 49.68 days; DPO 17.14 days; CCC 66.74 days. Asset Turnover 0.404; Inventory Turnover 1.812; Receivables Turnover 2.63; Payables Turnover 5.25.
Profitability and Returns: Gross Margin 20.72%; Operating Margin 12.28%; Pretax Margin 11.53%; Net Margin 11.11%; Effective Tax Rate 3.64%; ROA 4.48% (0.0448); ROE 6.23%; ROCE 5.97%.
Cash Flow and Capital Allocation: Operating Cash Flow per Share 0.00106; Free Cash Flow per Share -0.00113; Cash per Share 0.0144; Dividend Payout Ratio 0; Dividend Yield 0%.
Valuation and Multiples: Price/Earnings 1.614x; Price/Book 0.402x; Price/Sales 0.717x; EV/EBITDA 7.38x; Price to Cash Flow ~45.44x; Price to Operating Cash Flows ~45.44x; Price to Free Cash Flows not meaningful given FCF trajectory.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
72.74M |
150.12% |
0.00% |
| Gross Profit |
15.07M |
87.05% |
0.00% |
| Operating Income |
8.94M |
66.61% |
0.00% |
| Net Income |
8.08M |
164.10% |
0.00% |
| EPS |
0.01 |
164.29% |
0.00% |
Key Financial Ratios
operatingProfitMargin
12.3%
operatingCashFlowPerShare
$0
Management Commentary
Transcript Highlights: No QQ2 2025 earnings call transcript provided in the data. No management quotes available for this quarter. Investors should seek the company’s published earnings release or investor presentation for management commentary and forward-looking remarks. If needed, we can incorporate quotes from official transcripts once accessible.
Forward Guidance
Formal forward guidance by SP International for QQ3 2025 is not disclosed in the provided data. In absence of explicit targets, the outlook rests on observed momentum and industry trends. Potential drivers include ongoing demand for coconut-based foods, expanding OEM/distributor relationships, and geographic expansion in West Indies, Southeast Asia, and other regions. Risks include raw material cost volatility, currency fluctuations (MYR sensitivity given import mix), competitive intensity, and supply-chain disruptions.
Base case: Revenue growth in the low- to mid-double digits for QQ3/Q4 2025 with gross margin around 20%–22% and EBITDA in the high single digits of MYR millions, assuming stable coconut prices and continued channel expansion.
Bull case: Accelerated volume growth from new OEM partnerships, favorable premium pricing on certain coconut products, and improved operating leverage lifting margins toward ~14%+ in operating income.
Bear case: Margin pressure from rising coconut costs, FX headwinds, or slower-than-expected channel development, which could compress EBITDA margins and delay earnings accretion.