The Good (Strengths & Positive Highlights)

1. Strong Profit Growth
· Profit before tax rose 71.1% (YoY) for the quarter (RM46.6m vs RM27.2m).
· Profit for the year rose 20% (YoY) to RM126.6m.
· Basic EPS increased to 8.62 sen (from 7.20 sen).
2. Lower Impairment Losses
· Allowances for impairment loss on receivables dropped significantly:
· Q4: RM4.8m (vs RM15.0m last year)
· Full year: RM24.3m (vs RM37.5m last year)
· This indicates improved portfolio quality.
3. No Goodwill Impairment
· The previous year had a RM19.0m goodwill impairment; this year, none → a major positive swing.
4. Strong Dividend
· Total dividend declared for FY2026: 6.50 sen per share (same as last year).
· Second interim dividend of 3.50 sen declared, payable June 2026.
5. Solid Net Assets
· Net assets per share increased to RM0.59 (from RM0.57).
6. No Material Litigation or Unusual Items
· Clean audit report, no pending material litigation, no unusual items.
7. ESG / Governance
· No qualified audit report.
· New Employees’ Share Scheme (ESS) proposed for 2027, aligning staff incentives.

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The Bad (Areas of Concern & Decline)

1. Revenue Decline
· Quarterly revenue fell 14.3% (RM79.5m vs RM92.8m).
· Full year revenue fell 2.5% (RM323.2m vs RM331.7m).
· Main cause: lower early settlement and fee income, indicating reduced refinancing activity.
2. Higher Effective Tax Rate
· Effective tax rate > statutory rate due to non-deductible expenses.
· Tax expense rose to RM45.5m (from RM41.0m last year).
3. Lower Cash Position
· Cash and cash equivalents dropped to RM21.7m (from RM77.7m last year).
· Net cash used in financing activities: RM176.2m (mainly for Sukuk redemptions and dividends).
4. ESS Dilution Risk
· 31.7 million new options granted at RM0.96 exercise price.
· Diluted EPS is slightly lower (8.60 sen vs 8.62 sen basic).
5. Quarter-over-Quarter Decline
· Compared to preceding quarter (31 Dec 2025):
· Revenue down 2.1%
· PBT down 4.1%
· Net profit down 5.4%
6. High Financing Liabilities
· Total financing liabilities: RM2.04 billion (though slightly down from RM2.06bn).
· Interest/profit rates range from 4.4% to 5.1% → significant cost exposure.