Yamada Green Resources Limited (SGX: BJV) FY2025 Full-Year Results Analysis

Yamada Green Resources Limited has released its unaudited condensed consolidated financial statements for the fiscal year ended 30 June 2025. The company, which has transitioned primarily into the investment property sector after the cessation of its processed food products business, continues to face a challenging macro environment, particularly in its core PRC operations. The following analysis examines the key financial metrics, highlights significant trends, and summarizes management commentary and corporate actions as disclosed in the report.

Key Financial Metrics and Performance

Summary of Performance

• Revenue and Gross Profit: The Group’s continuing operations (primarily property rental) saw revenue decline 11.2% YoY, mainly due to lower rental rates and occupancy at Fuzhou City. Gross profit margin fell from 68.5% to 64.1% as a result of lower rental yields and higher property-related taxes.
• Net Loss: Loss after tax improved from RMB 33.4m in FY2024 to RMB 20.6m in FY2025, largely due to a lower fair value loss on investment properties (RMB 30.0m vs RMB 42.0m YoY) and reduced administrative expenses.
• Net Asset Value: NAV per share declined, reflecting the continued erosion of equity from operating losses and property revaluations.
• Dividend: The company has proposed a final cash dividend of RMB 0.57 cents per share (subject to AGM approval), a sharp decrease from the prior year’s RMB 1.13 cents per share.

Historical and Segmental Trends

The company completed its exit from the processed food products segment by the end of FY2024. As a result, FY2025 results reflect a “pure-play” investment property business with revenues coming from assets in the PRC, Singapore, and Japan. Notably, revenue from PRC properties remains the dominant contributor, but diversification into Japan is underway.

The company’s average occupancy rate for investment properties remained relatively stable at 81.4% (81.9% last year), but lower rental rates weighed on topline growth and margins. The company continues to be impacted by the sluggish leasing market in the PRC.

Asset Revaluations and Exceptional Items

• The Group recorded a fair value loss on investment properties of RMB 29.96m (RMB 41.99m in FY2024), reflecting ongoing challenges in the PRC property market.
• There were no significant asset sales, divestments, or fundraising activities during the period.
• No material related party transactions or unusual fund flows were disclosed.

Corporate Actions and Events

• Japanese Expansion: The Group acquired several properties in Osaka, Japan, in line with its strategy to diversify away from the PRC and reduce concentration risk. Two additional property acquisitions were completed or announced in July and August 2025.
• Treasury Shares: No further buybacks were conducted in FY2025 after a purchase of 280,000 shares in FY2024.

Management Commentary and Outlook

Further to the acquisition of a piece of land located at Shiginonishi Joto-ku, Osaka and land and building located at Sumiyoshi Ward, Osaka in November 2024 and May 2025 respectively, the Company announced that the Company has on 18 July 2025, entered into a sale and purchase agreement for the acquisition of another land and building located at Sakai City, Osaka. The Acquisition is In line with the Group’s plans to further expand its property rental business in Japan. This serves to strengthen its diversification of the Group’s property investment and rental segment and reduce its concentration risk in the People’s Republic of China (“PRC”).

Rental prices in Osaka have steadily increased at a compound annual growth rate of 2.6% since year 2019 and has continued to demonstrate its strong performance in year 2025, driven by sound economic and demographic fundamentals, as well as key infrastructure developments and the upcoming events… Meanwhile, in the first half of year 2025, the property leasing market at PRC remained weak. Corporations remained cost-conscious and hesitant to commit to leases as uncertainty permeated the business environment. Pressured by higher vacancy rates, landlords continued to offer competitive leasing incentives.

The management will continue to prioritize the occupancy rate as the main business objective and efficiently utilise various resources to optimise operating conditions, this include provide tailored lease plans for acquiring new tenants by offering competitive rental rates, so as to boost the occupancy rate…

The tone of the statement is cautiously optimistic with regard to the Japanese market, while acknowledging ongoing headwinds in the PRC. Management signals a clear intent to diversify and stabilize earnings through the Japanese property market, given its better fundamentals and outlook.

Conclusion and Investor Recommendations

Overall, Yamada Green Resources Limited’s FY2025 performance remains weak, but shows improvement over the prior year. The company continues to post operating losses, primarily due to fair value writedowns in its PRC property portfolio, but is making progress in reducing its cost base and diversifying into more promising markets such as Japan. The sharply reduced dividend signals an ongoing need for balance sheet preservation.

• If you are currently holding the stock: Caution is warranted. While the company is showing some improvement and is actively diversifying into Japan, persistent losses and continued risks in the PRC property market are a concern. Investors may consider holding only if they have a high risk tolerance and confidence in the Japanese expansion. Otherwise, reviewing portfolio exposure and considering a reduction in position may be prudent if no material improvement is seen in the next few quarters.
• If you are not currently holding the stock: It may be best to stay on the sidelines for now. The company’s results remain in the red, and the outlook for its largest asset base (PRC) is still poor. There is potential upside if the Japanese investments bear fruit, but that path is still uncertain and will take time to meaningfully impact group profitability.

Disclaimer: This analysis is based solely on information disclosed in the company’s financial report for FY2025. It does not constitute investment advice and should not be relied upon as such. Investors should conduct their own due diligence and consider their individual financial circumstances and risk tolerance before making investment decisions.

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