Thakral Corporation Ltd 3Q2025 Business Update: Major Developments and Price-Sensitive Insights

Overview

Thakral Corporation Ltd has released its 3Q2025 business update, revealing significant financial and operational developments across its key segments. Shareholders should note several price-sensitive events, including a substantial fair value gain from the GemLife IPO, a major divestment in Japan, and a successful listing of The Beauty Tech Group on the London Stock Exchange. These events are likely to impact the company’s valuation and future growth trajectory.

Key Financial Highlights

• Net Attributable Profit: S\$128.8 million for 9M2025, representing a remarkable 767% YoY increase, driven mainly by a one-off fair valuation gain from GemLife’s IPO.
• Revenue: S\$276.4 million, up 35% YoY, with strong contributions from both Lifestyle and Investment segments.
• Net Asset Value (NAV) per Share: S\$2.28 as of 30 Sep 2025, up from S\$2.12 at 1H2025.
• Share Price: S\$1.62 as of 5 Nov 2025.
• Dividend Income: Noted from GemLife Over-50s Resorts and commercial properties in Australia and Japan.
• Operating Profit: S\$28.4 million for 9M2025 (+169% YoY).
• Gross Margin: 21.7%, up 4.5 percentage points YoY.
• Cash and Bank Balances: S\$27.1 million as at 30 Sep 2025, up 143.7% QoQ.

Major Price-Sensitive Developments

1. GemLife IPO and Fair Value Gain

Thakral owns a 16.8% stake in GemLife Communities Group, which successfully listed on the ASX in July 2025. The IPO resulted in a substantial fair valuation gain, contributing S\$146.6 million before tax to the company’s profit in 9M2025. GemLife’s market cap stands at A\$1.91 billion, with its share price up 20.4% since IPO. This gain is a one-off event but has had a pronounced impact on Thakral’s reported results and NAV per share.

GemLife operates 32 communities with 1,923 occupied homes and a pipeline of 9,913 homes, leveraging two revenue streams: home sales and recurring weekly site fees, as well as renewable energy revenues.

2. Divestment of Yotsubashi Nakano Building (Japan)

In September 2025, Thakral divested the Yotsubashi Nakano Building in Osaka for JPY5.3 billion, at 13.7% above book value. This generated an equity internal rate of return of 18% p.a., S\$2 million in net attributable gain, and S\$6.4 million in cash flow. This sale demonstrates Thakral’s ability to realize value from its property portfolio and provides additional liquidity for future investments.

3. The Beauty Tech Group IPO (London Stock Exchange)

Thakral’s Lifestyle segment saw a successful IPO of The Beauty Tech Group on the LSE in October 2025, raising £29 million at a £2.71 IPO share price. Thakral’s post-IPO stake stands at 6.04%, down from 9.55% pre-IPO, following the divestment of 2.86 million shares for S\$13.1 million. The market cap of The Beauty Tech Group is now £265.7 million, and Thakral’s total financial uplift from the IPO was S\$28.5 million.

Segmental Performance and Strategic Expansion

Investment Segment

• Japan: Maintains strong average occupancy (~99%) for five commercial buildings in Osaka, with effective ownership ranging from 55-59%. Also owns the Best Western Osaka Tsukamoto Hotel.
• India (Gurugram Real Estate): Capitalizing on the fast-growing luxury housing and commercial real estate market in Gurugram, Delhi NCR, with significant land holdings for residential, mixed-use, and healthcare developments.

Lifestyle Segment

• DJI Distribution: Thakral is the exclusive distributor of DJI drones in seven South Asian countries. Plans to set up 20-30 DJI stores across India and South Asia over the next 2-3 years starting Q1 2026. Expanded product range includes consumer, enterprise, agricultural drones, and advanced action cameras.
• Bharat Skytech: Thakral’s wholly-owned subsidiary in India manufactures drone components, targeting the rapidly growing agriculture drone market (projected US\$631.4 million revenue by 2030, 28.1% CAGR), with bulk production set to begin in FY2026.
• Skylark Drones: Thakral holds a ~23% stake in this leading drone-powered SaaS company serving Indian conglomerates and Fortune 500 firms.
• Beauty & Fragrance: Aggressive expansion in Greater China, growing mono-brand store count from 10 in FY2022 to 64 in 1H2025. Channel expansion, new brands, and increased productivity drive growth.
• Nespresso India: Secured official distribution rights for all Nespresso products, with online, B2B, and retail boutique channels. Additional boutiques/pop-ups planned with expected profitability within two years.

Geographic Revenue Breakdown

• South Asia: Revenue up 33% YoY due to DJI expansion and investments in Bharat Skytech and Skylark.
• Greater China: Revenue up 22% YoY, driven by beauty and fragrance business growth and new brand additions.
• Japan: Revenue lower due to accounting for Yotsubashi Nakano divestment under associates.
• Australia: Significant contribution from GemLife fair valuation gain.

Balance Sheet Highlights

• Total Assets: S\$557.2 million (+6.6% QoQ)
• Total Debt: S\$80.8 million (+10.2% QoQ)
• Net Assets: S\$336.2 million (+4.1% QoQ)
• Debt/Equity Ratio: 0.28

Investment Portfolio Snapshot

• Total value of quoted investments: S\$299.4 million (as at 5 Nov 2025)
• Total value of unquoted investments: S\$165.8 million
• Total value of investments: S\$432.1 million
• Major holdings: GemLife (ASX), The Beauty Tech Group (LSE), Gurugram real estate, Japan commercial properties, Riverwalk Office (Singapore), new economy ventures.

Conclusion: Key Takeaways for Investors

• Thakral’s strong financial performance in 9M2025 is largely driven by one-off gains from GemLife’s IPO and strategic asset divestments.
• The successful IPO of The Beauty Tech Group and expansion of the Lifestyle segment (especially in drones and beauty) demonstrate the group’s ability to monetize and scale its investments.
• Growth in South Asia and Greater China is underpinned by robust consumer demand, distribution agreements, and aggressive channel expansion.
• Ongoing investments in India’s real estate and drone technology sectors position Thakral for future growth in high-potential markets.
• These developments, especially the fair value gain from GemLife, the Beauty Tech Group IPO, and asset divestments in Japan, are price-sensitive and may meaningfully impact Thakral’s share value and investor sentiment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The information herein is based on publicly available data and company disclosures as at the dates stated, and may be subject to risks, uncertainties, and changes without notice.

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