Executive Summary
- QQ1 2025 (the quarter ended 2025-03-31) revenue declined to MYR 362.48 million, down 16.2% year over year and 13.8% quarter over quarter, reflecting continued cyclicality in the scrap and metal processing markets. Despite the revenue drop, Heng Hup delivered a modest improvement in gross margin to 8.52% (vs. 7.63% in Q4 2024), supported by a more favorable product mix and disciplined cost management. Net income was MYR 4.24 million, translating to a net margin of 1.17% and an EPS of MYR 0.0042 for the quarter.
- Profitability showed resilience in a weak demand backdrop: EBITDA stood at MYR 9.32 million with an EBITDA margin of approximately 2.57%, while operating income was MYR 7.27 million (operating margin ≈ 2.01%). The quarter benefited from cost control and a relatively stable gross profit despite lower revenue. However, year‑on‑year earnings declined meaningfully (net income down ~26% YoY) as the volume recovery remained uncertain within the broader metals cycle.
- The business exhibits relative margin stability versus revenue weakness, but the quarterly data underscore commodity‑price sensitivity and cyclicality in the metal recycling and processing ecosystem. Investors should monitor scrap price trends, steel mill demand in Malaysia and key export markets, exchange rate dynamics (MYR), and any shifts in the company’s production mix or capacity utilization that could carry through to the next quarters.
Key Performance Indicators
QoQ: -13.84% | YoY:-16.21%
QoQ: -23.45% | YoY:-23.08%
QoQ: -39.53% | YoY:-26.06%
QoQ: -40.00% | YoY:-26.32%
Key Insights
Revenue: MYR 362,478,500; YoY change: -16.21%; QoQ change: -13.84%
Gross Profit: MYR 30,866,500; Gross Margin: 8.52%
Operating Income: MYR 7,268,000; Operating Margin: 2.01%
EBITDA: MYR 9,323,500; EBITDA Margin: 2.57%
Net Income: MYR 4,235,500; Net Margin: 1.17%
EPS (diluted): MYR 0.0042; Weighted Avg Shs: ~1,000.12 million
Balance sheet and cash flow data are not provided in the input; liquidity and leverage require further disclosure....
Financial Highlights
Revenue: MYR 362,478,500; YoY change: -16.21%; QoQ change: -13.84%
Gross Profit: MYR 30,866,500; Gross Margin: 8.52%
Operating Income: MYR 7,268,000; Operating Margin: 2.01%
EBITDA: MYR 9,323,500; EBITDA Margin: 2.57%
Net Income: MYR 4,235,500; Net Margin: 1.17%
EPS (diluted): MYR 0.0042; Weighted Avg Shs: ~1,000.12 million
Balance sheet and cash flow data are not provided in the input; liquidity and leverage require further disclosure.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
362.48M |
-16.21% |
-13.84% |
| Gross Profit |
30.87M |
-0.11% |
-3.79% |
| Operating Income |
7.27M |
-23.08% |
-23.45% |
| Net Income |
4.24M |
-26.06% |
-39.53% |
| EPS |
0.00 |
-26.32% |
-40.00% |
Management Commentary
No earnings call transcript or management quotes were provided in the data set. As a result, transcript highlights and quotes could not be extracted.
Forward Guidance
- There is no formal forward guidance disclosed for QQ2 2025 in the provided data. Given the cyclicality of the scrap metal and processing space, management commentary (if any) and industry trends suggest that investors should monitor: (i) scrap ferrous price direction and steel production/remelting demand in Malaysia and key export markets; (ii) input costs and cost-control effectiveness; (iii) MYR exchange rate volatility and any impact on cross-border sourcing and pricing; (iv) capacity utilization and potential for product mix optimization. The achievability of any implied improvement hinges on stabilizing or improving scrap prices and demand for processed steel products. In the absence of explicit guidance, a cautious stance is warranted until clearer volume and price signals emerge.