- 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.