Astaka Holdings Limited: Q2 & 1H 2025 Financial Analysis and Investor Brief

Astaka Holdings Limited, a property developer listed on the SGX Catalist, has released its unaudited condensed interim financial statements for the second quarter and six months ended 30 June 2025. Below, we present a detailed analysis of the company’s key financial metrics, performance trends, and strategic developments, aimed at helping investors assess the current outlook.

Key Financial Metrics

Historical Performance Trends

• Revenue: The Group saw a significant YoY drop in revenue (-39.1%) for Q2 2025, attributed to slower sales of remaining units at The Astaka, which are less aligned with market demand, and a slowdown at Bukit Pelali. However, revenue from ongoing projects (Aliva and Arden) is being recognized progressively as construction advances. QoQ, revenue improved by 17.2% as the Aliva project moved forward.
• Profitability: Gross profit was down 32.2% YoY but improved 75.1% QoQ. Net loss increased 6.4% YoY but narrowed by 45.1% QoQ, indicating some operational progress as the company’s projects advance and cost management improves.
• Earnings Per Share (EPS): EPS loss narrowed substantially QoQ, reflecting the reduced rate of losses as sales and construction activities picked up.

Balance Sheet Highlights

• Net Asset Value (NAV): As of 30 June 2025, NAV per share stood at RM3.46, down from RM3.69 at end-2024, reflecting continued losses.
• Development Properties: Increased to RM242.46 million from RM230.03 million at year-end, driven by ongoing investments in the Aliva and Arden projects.
• Cash and Equivalents: Improved significantly to RM40.12 million (from RM21.64 million), supported by advances from affiliated corporations and drawdown of loans.
• Current Liabilities: Rose to RM248.96 million (from RM213.36 million), mainly from payables and related party loans as project activity increased.

Exceptional Items and Related-Party Transactions

• Related-Party Loans: The company relies on continuing financial support from its controlling shareholder and related entities, including significant borrowings at 8% per annum and advances to joint ventures. The Board asserts that Dato’ Malek will not demand repayment until financially feasible and will continue to support the Group.
• No Asset Revaluations or Divestments: There were no asset revaluations, divestments, or IPOs during the period.
• No Dividend Declared: The company continues to conserve cash for working capital and pipeline projects, with no dividends proposed for Q2 2025 or prior periods.

Strategic and Industry Developments

• Project Progress: Aliva and Arden projects are expected to drive future revenue as construction milestones are met. Arden, in particular, is in its initial construction phase, with revenue recognition to accelerate as progress continues.
• Macroeconomic Tailwinds: Johor-Singapore Special Economic Zone (JS-SEZ) is attracting significant investment, and infrastructure improvements (notably the RTS Link) are expected to support property demand in the region. The Group’s assets are well-positioned to benefit from these trends.
• Government Incentives: Budget 2025 incentives for first-time homebuyers and easing property overhang suggest a gradually improving property market environment in Johor.

Corporate Actions

• Share Subscription: A restructuring of joint venture shareholdings was completed, with Astaka’s stake in ACSB diluted to 49%. The Group retains control over ACSB; the transaction was fully funded in cash and is not expected to materially impact net tangible assets or earnings per share for FY2025.
• No Share Buybacks or Dilution: No buybacks, placements, or new issues were undertaken in the period.

Chairman’s Statement and Management Tone

Chairman’s Statement:
“On behalf of the Board, we, the undersigned, hereby confirm that, to the best of our knowledge that nothing has come to the attention of the Board which may render the unaudited condensed interim financial statements for the six months ended 30 June 2025 to be false or misleading in any material aspect.”
The tone of management commentary is cautiously optimistic, highlighting ongoing stakeholder support, progress in project development, and improving macroeconomic conditions, while acknowledging current losses and liquidity management priorities.

Outlook and Forecasted Events

• Revenue recognition is expected to accelerate as Aliva and Arden reach further construction milestones.
• Property market fundamentals in Johor are strengthening, supported by SEZ investments and cross-border infrastructure.
• Ongoing reliance on related-party funding is expected to continue, but Board asserts sufficient going-concern support for at least the next 18 months.
• No legal disputes, natural disasters, or tax policy changes were reported as impacting the business.

Conclusion & Investment Recommendations

Financial Performance and Outlook: Astaka Holdings is still loss-making, but the operational losses are narrowing and the company is well-positioned to benefit from stronger property market fundamentals and strategic infrastructure investments in Johor. Liquidity has improved and project pipeline is advancing, albeit with continued reliance on shareholder and related-party support.

• If you are currently holding Astaka Holdings stock: Consider maintaining your position if you have a medium- to long-term outlook, especially if you believe in the growth prospects of Johor’s property market and the company’s strategic land bank. However, monitor the company’s ability to convert pipeline projects into cash flow and reduce net losses. Pay attention to future capital requirements and any dilution risk from further fundraising.
• If you are not holding Astaka Holdings stock: It may be prudent to wait for clearer signs of profitability improvement and consistent cash flow from ongoing projects before initiating a position. The current lack of dividend and ongoing losses suggest caution, but improvements in external market conditions and company liquidity could provide upside if project milestones are met as forecasted.

Disclaimer: This analysis is based solely on the information provided in the company’s unaudited interim financial report for Q2 and 1H 2025. It does not constitute investment advice. Investors should conduct their own due diligence and consider their risk tolerance before making any investment decisions.

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