ISEC Healthcare (40T) Q1 2025 earnings summary

Executive summary

• Revenue rose 6% year-over-year to $17.86 million for the quarter ended 31 March 2025, driven by increased business activities and more eye centres in Malaysia.

• Net profit declined 3% year-over-year to $3.08 million, mainly due to higher administrative expenses from new and expanded centres.

• Gross profit margin remained stable at 45.3% compared to the prior year.

Financial highlights

• Revenue increased by $0.95 million year-over-year, with specialised health services contributing $0.93 million of the growth.

• Cost of sales rose 6% to $9.77 million, in line with revenue growth.

• Administrative expenses increased by $0.72 million, reflecting expansion and higher staff costs.

• Other expenses decreased by $0.13 million due to lower amortisation of intangible assets.

• Cash and cash equivalents increased to $17.27 million as of 31 March 2025, up from $15.91 million at year-end 2024.

Outlook and guidance

• Construction of new strata-title units in Kuala Lumpur is on schedule, with operations expected to commence by 2027.

• A new 72%-owned subsidiary in Seremban, Malaysia, is being incorporated, with funding from internal resources and no material impact expected for FY2025.

• The group remains cautious in Myanmar due to ongoing political uncertainty and recent earthquake, but operations continue profitably.