KUCHING: Quality Concrete Holdings Bhd has sharply narrowed its group net loss to RM1.09 million in the third quarter ended Oct 31, 2025 (3Q2025), from RM6.6 million a year earlier, as revenue climbed to about RM56 million from RM38.1 million.
The stronger showing was underpinned by a robust performance in the manufacturing segment, driven by higher demand for pipe and asphalt premix products. Loss per share improved to 1.88 sen from 11.37 sen in 3Q2024.
For the quarter under review, group revenue jumped by RM17.9 million, or 47.1 per cent, to RM56 million. This was mainly attributable to manufacturing segment sales rising to RM29.9 million from RM16.1 million previously, led by continued strength in the pipes division.
The higher turnover enabled the group to swing to a pre-tax profit of RM792,000, compared with a pre-tax loss of RM5.69 million in 3Q2024. The pipes division posted a pre-tax profit of RM1.7 million, up from RM0.2 million, as sales were boosted by accelerated customer orders ahead of the sales and service tax (SST) expansion announced by the government in June.
During the same period, the construction and property development segment reduced its pre-tax loss to RM1 million from RM5.2 million. The construction division narrowed its pre-tax loss to RM4.4 million from RM7.5 million after loss-making projects were completed in 2Q2025, while the road maintenance division saw pre-tax profit rise to RM3.5 million from RM2.5 million due to improved operating efficiency, the group said in its explanatory notes.
For the nine-month period in FY2025 (9m2025), Quality Concrete cut its group net loss to RM5.75 million from RM7.6 million a year earlier, as revenue grew to RM136.2 million from RM115.1 million. The manufacturing segment generated sales of RM63.7 million (9m2024: RM43.63 million), while the construction and property development segment contributed RM71.3 million (RM70.5 million). The trading segment recorded sales of RM1.5 million (RM1 million).
“Revenue from the manufacturing segment rose significantly to RM66.8 million from RM44.6 million, an increase of RM22.2 million, mainly due to higher demand for pipe and asphalt premix products. The pipes division contributed an additional RM17.5 million, supported by ongoing government pipe replacement initiatives, while the asphalt premix division added RM2.8 million,” the company said.
“The construction and property development segment recorded a marginal revenue increase of RM0.8 million to RM71.3 million from RM70.5 million previously. The construction division posted higher revenue of RM40.1 million compared to RM37.8 million, driven by increased progress billings from ongoing projects. This was partially offset by lower revenue from the road maintenance division due to fewer instructed works during the period,” it added.
In 9m2025, the manufacturing segment returned to the black with a pre-tax profit of RM2.6 million, compared with a pre-tax loss of RM1.3 million in the corresponding period last year. However, the construction and property development segment saw its pre-tax loss widen to RM4.8 million from RM4.5 million. The construction division’s pre-tax loss increased by RM1.3 million to RM10 million, mainly due to lower margins on projects in hand and the absence of insurance claims of RM3.2 million received in 9m2024. The road maintenance division fared better, recording a RM1 million increase in pre-tax profit to RM5.3 million, “thanks to lower cost-intensive activities arising from improved road conditions”.
Commenting on prospects for the financial year ending Jan 31, 2026, the company said the macroeconomic environment remains challenging, with global growth constrained by geopolitical uncertainties and persistent inflationary pressures.
“Ongoing supply chain disruptions and commodity price volatility may continue to exert upward pressure on material costs.
“Domestically, while Malaysia has recently reduced its policy rate, signalling a more accommodative stance, the group remains cautious amid continued financing pressures. Existing borrowings secured at higher interest rates continue to weigh on performance, and lenders may maintain conservative credit terms.
“In this environment, the group will continue to exercise prudent operational and financial management, with a focus on cost discipline, operational efficiency and selective project acquisition to mitigate risks and navigate prevailing uncertainties,” it added.
