Sen Yue Holdings Limited FY2025 Results: Strong Turnaround Driven by Resources Recovery

Sen Yue Holdings Limited (“Sen Yue”) has published its unaudited condensed interim financial statements for the six months and full year ended 30 September 2025. The company operates three main segments: Metal Components, Electro Deposition (ED) Coating, and Resources Recovery, focusing on metal manufacturing, coating services, and battery recycling, respectively. Below is an in-depth analysis of its key financial metrics, performance trends, and outlook.

Key Financial Metrics and Segment Performance

Segment Breakdown and Trends

• Resources Recovery: The primary growth driver, with revenue surging 188% YoY to S\$54.57m in FY2025, driven by improved battery scrap supply and stronger demand for black mass in the U.S. and Europe.
• ED Coating: Delivered steady growth, up 10% YoY to S\$14.05m, leveraging stable automotive sector demand despite some near-term headwinds in Malaysia.
• Metal Components: Continued to decline, with revenue down 47% YoY to S\$1.52m, reflecting softer downstream demand and lower customer orders.

Profitability and Margins

• Gross Profit: Rose to S\$6.39m (FY2025), up from S\$1.01m (FY2024). Gross margin improved to 9.2% from 3.0%.
• Net Profit: Returned to profitability with S\$0.18m in FY2025, reversing a S\$12.14m loss in FY2024. However, 2H2025 saw a net loss mainly due to higher cost of battery scraps and income tax expenses.
• EPS: Turned positive for the full year at 0.01 cents, compared to a loss of 0.37 cents last year.

Balance Sheet and Cash Flow Overview

• Net Asset Value: Stable at 0.72 cents per share (FY2025), compared to 0.73 cents (FY2024).
• Working Capital: Improved to S\$8.63m, up from S\$7.13m.
• Cash Balance: Decreased to S\$5.43m, reflecting higher inventory and receivables, partly offset by operating cash inflows.
• Debt: Loans and borrowings reduced by 43% to S\$2.69m, reflecting prudent debt management and repayments.

Dividend Policy

No dividend was declared or recommended for FY2025, with the Board citing the need to conserve funds for business activities. This is consistent with the previous year.

Exceptional Items & Related-Party Transactions

• Impairment: Metal Components segment recorded S\$0.18m impairment loss on PPE due to underperformance.
• Related-Party Transactions: Included consultancy fees, battery scrap purchases, and sales of black mass, but no transactions exceeded S\$100,000 under the IPT mandate.
• No errors, inconsistencies, or adverse audit opinions were reported.

Significant Corporate Events & Industry Outlook

• Resources Recovery: Positive industry outlook, with EV battery recycling volumes rising in U.S. and Europe. Margin risks persist due to commodity price volatility (nickel, cobalt, lithium) and potential oversupply.
• ED Coating: Malaysian auto sector showed near-term weakness but is expected to rebound. Rising costs continue to pressure margins; strategic pricing and service diversification are key to maintaining competitiveness.
• No major divestments, IPOs, fundraising, or asset sales reported.
• Capital Expenditure: Minor commitments for future capex (S\$320k).

Chairman’s Statement

“ORDER OF THE BOARD
SEN YUE HOLDINGS LIMITED
Yap Meng Sing
Non-Executive Chairman
Singapore
26 November 2025″

The statement is formal and neutral, providing no further commentary on outlook or strategic direction.

Conclusion: Investment View and Recommendations

Overall, Sen Yue Holdings has achieved a significant turnaround in FY2025, returning to profitability and delivering robust top-line growth, mainly from its Resources Recovery segment. The balance sheet is stable, debt levels have decreased, and working capital has improved. However, ongoing risks include commodity price volatility, margin pressure, and sectoral headwinds in Malaysia’s automotive market.

For Current Shareholders

• Consider holding your position, as the company has returned to profitability and sector fundamentals for battery recycling remain favorable.
• Monitor margin risks and potential further declines in the Metal Components segment.
• Watch for signs of dividend resumption, which would be a positive signal for capital return.

For Prospective Investors

• Sen Yue may offer upside exposure to the global EV battery recycling trend. However, entry should be considered with caution due to margin sensitivity and lack of dividend.
• Look for confirmation of sustained profitability and further growth in Resources Recovery before initiating a position.

Disclaimer: This analysis is based solely on the company’s published financial results and publicly disclosed information. It is not investment advice. Investors should consider their own risk tolerance and conduct further due diligence before making investment decisions.

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