KUCHING: Property developer Naim Holdings Bhd has slipped into the red, posting a net loss of RM6.12 million for the third quarter ended Sept 30, 2025 (3Q2025) — a sharp reversal from a profit of RM43.3 million a year earlier — dragged down primarily by losses in an associate construction firm.
Group revenue fell to RM44.6 million from RM80.4 million previously, while losses per share stood at 1.22 sen versus earnings per share of 8.64 sen a year ago.
Naim said it recorded a share of net loss of RM26.3 million from the unnamed associate, arising from the “derecognition of some variation works currently pending its construction client’s approval on prudent grounds.” The group did not disclose the nature of the project undertaken by the associate.
For the January–September 2025 period (9M2025), the construction segment remained the biggest revenue contributor at RM58.1 million, though this was less than half the RM138 million reported in 9M2024.
The property development division, however, posted stronger revenue of RM51.35 million (9M2024: RM30.23 million), while the others segment — comprising hotel, retail leasing, quarry and related businesses — registered RM31 million (9M2024: RM31.82 million).
Group revenue for 9M2025 slipped by about RM59.3 million due to lower sales from substantially completed construction projects. Pre-tax profit plunged to RM11.44 million (9M2024: RM100.2 million), weighed down by a RM31.8 million decline in contributions from Dayang Enterprise Holdings Bhd and a RM3.5 million loss from core operations (9M2024: +RM21.5 million).
Naim’s share of after-tax profit from Dayang fell to RM40.9 million from RM72.7 million previously.
In 3Q2025, Naim reported a pre-tax loss of RM5.95 million (2Q2025: +RM19.34 million) on lower turnover of RM44.55 million (2Q2025: RM51.46 million), citing decreased site progress for ongoing projects. The quarter was further impacted by the RM26.3 million loss from the associate firm due to derecognised variation works.
Dayang, meanwhile, contributed a slightly higher after-tax profit of RM19.4 million (3Q2024: RM18.6 million).
Property development: Revenue surged to RM51.35 million in 9M2025 (9M2024: RM30.23 million), supported by higher construction progress and stronger property sales of RM47 million (RM42.2 million). In 3Q2025, the segment recorded a pre-tax profit of RM5.1 million (2Q2025: –RM108,000) as revenue increased to RM22.64 million (RM14.49 million).
Construction: The segment slipped into a pre-tax loss of RM3.9 million in 9M2025 (9M2024: +RM17 million) as revenue contracted to RM58 million (RM138 million). Last year’s stronger earnings were boosted by cost savings from a legal settlement with a contractor.
Others segment: This division posted a pre-tax loss of RM2.1 million (9M2024: +RM11.3 million) as revenue eased slightly to RM28.95 million (RM29.34 million). The 9M2024 performance included a one-off RM13 million gain from an investment property sale. Naim said hotel and retail occupancy rates improved during the period.
Naim said that although Malaysia’s property market remains soft in the near term, “we remain a positive outlook on the upcoming growth prospects, particularly in Sarawak.”
“We have continuously implemented various sales and marketing initiatives to clear our existing inventory while cautiously launching new development projects at competitive prices amid rising costs of materials and financing,” it added.
The group stated that its management is closely monitoring construction projects to ensure timely completion and targeted margins, and expects gradual improvement from the retail, commercial leasing and hotel operations in Miri and Bintulu.
