Samurai 2K Aerosol Limited: 1H2026 Financial Results Analysis
Samurai 2K Aerosol Limited has released its interim condensed consolidated financial statements for the six months ended 30 September 2025 (1H2026). The report outlines a substantial turnaround in performance, driven by insurance proceeds, stable core operations, and an ongoing focus on operational efficiency, despite a challenging competitive environment in ASEAN markets.
Key Financial Metrics
| Metric |
1H2026
(Current Period) |
2H2025
(Previous Half-Year) |
1H2025
(Same Period Last Year) |
YoY Change |
QoQ Change |
| Revenue (RM’000) |
39,721 |
37,658 |
37,658 |
+5.48% |
+5.48% |
| Gross Profit (RM’000) |
19,861 |
19,003 |
19,003 |
+4.51% |
+4.51% |
| Profit/(Loss) Before Tax (RM’000) |
19,095 |
(10,015) |
(10,015) |
n.m. |
n.m. |
| Net Profit/(Loss) (RM’000) |
17,695 |
(10,021) |
(10,021) |
n.m. |
n.m. |
| EPS (sen) |
5.29 |
(3.00) |
(3.00) |
n.m. |
n.m. |
| Dividend (SGD per share) |
0.00175 (Interim) |
N/A |
N/A |
N/A |
N/A |
Historical Performance Trends and Highlights
- Revenue growth: The group achieved a 5.48% YoY increase in revenue, driven primarily by higher demand from markets other than Indonesia, with notable growth in Thailand, Vietnam, Philippines, UK, Singapore, Cambodia, India, and the US.
- Profit turnaround: Net profit swung from a loss of RM10.02 million in 1H2025 to a profit of RM17.70 million in 1H2026, largely due to an exceptional insurance claim of RM16.06 million related to a fire incident.
- Margin stability: Gross profit margin remained consistent at approximately 50%.
- Dividend resumption: The group declared an interim dividend of SGD0.00175 per share (tax-exempt, payable on 8 December 2025), after no dividend in the previous period.
Exceptional Earnings & Expenses
- Exceptional income: Insurance proceeds of RM16.06 million recognized as other income following a fire incident, significantly boosting the bottom line.
- No asset revaluation delays or errors: No such disclosures were made.
- No major legal, policy, or macroeconomic events: The report notes a competitive market and economic recovery headwinds, but no specific regulatory or litigation events.
Cash Flow and Working Capital Movements
- Operating cash flow was RM4.41 million, up from RM2.09 million in the prior period.
- Investing cash flow was positive at RM15.56 million, fueled by the insurance payout.
- Financing activities resulted in a net outflow of RM14.47 million, with major repayments of borrowings and dividend payments.
- Cash and cash equivalents stood at RM39.45 million at period-end, indicating strong liquidity.
Share Capital and Dilution
- No share buybacks or new issuances occurred during the period.
- Employee share options outstanding: 1,503,000 (approx. 0.45% of issued shares).
Chairman’s Statement
“The Group expects the operating environment to remain challenging in the next reporting period, driven by intense market competition and a slower pace of economic recovery in certain ASEAN countries. Nevertheless, the Group continues to strengthen its competitiveness by pursuing new product innovations and focusing on enhancing operational efficiency and cost management.”
The tone is cautiously optimistic, acknowledging headwinds but emphasizing innovation and operational improvement.
Dividend Announcement
- Interim dividend: SGD0.00175 per ordinary share, tax-exempt, payable on 8 December 2025.
- Record date: 28 November 2025, 5.00 pm.
- No dividend: was declared for 1H2025.
Outlook and Forecasted Events
- Management highlights continued market competition and economic uncertainty in ASEAN as challenges.
- Focus remains on innovation, cost management, and operational efficiency to sustain performance.
Conclusion & Investment Recommendations
Overall, Samurai 2K Aerosol Limited delivered a strong set of results for 1H2026, marked by a significant profit turnaround and robust cash generation primarily due to exceptional insurance proceeds. Core business performance remains stable, with revenue and gross margins holding firm and a resumption of dividend payments signaling confidence in liquidity. However, investors should note that the profit surge is largely non-recurring and that management expects competitive and economic challenges ahead.
- If you are currently holding the stock:
- Consider maintaining your position to benefit from the interim dividend and the company’s solid cash reserves.
- Monitor future quarters for normalization of earnings, as the exceptional insurance income is non-recurring. Watch for sustained growth in operating profit and cash flow.
- Be aware of management’s caution about market competition and economic recovery in ASEAN.
- If you are not currently holding the stock:
- The stock may warrant consideration for its stable core operations and strong liquidity position.
- However, evaluate entry points carefully, as the recent profit spike is not indicative of recurring business profitability. Seek evidence of ongoing earnings growth from operations, not just exceptional gains.
- Consider waiting for further clarity on the company’s ability to grow profits organically in a tough market environment.
Disclaimer: This analysis is based solely on the company’s published financial statements for 1H2026. It does not account for external market factors, future management decisions, or subsequent events. Investors should conduct further research and consider their own risk tolerance before making investment decisions.
View Samurai 2K Historical chart here
