Acesian Partners Limited FY2025 Financial Results Analysis

Acesian Partners Limited, a Singapore-listed manufacturer and supplier of critical airflow products, released its condensed interim consolidated financial statements for the twelve months ended 31 December 2025. This analysis breaks down the company’s key financial metrics, performance trends, and significant events to provide investors with a clear view of the business’s financial health and outlook.

Key Financial Metrics and Performance Table

Full-Year Comparison

Historical Performance and Trends

• Revenue: The Group’s revenue declined 20.8% year-over-year, mainly due to a major greenfield project being awarded to overseas contractors, resulting in reduced project-based order intake. However, revenue rebounded strongly in the second half of FY2025, rising 92.6% QoQ and 44.2% YoY.
• Profitability: The business swung from a net profit of \$507,000 in FY2024 to a net loss of \$2.57 million in FY2025. This was mainly driven by lower sales volume, underutilized production capacity, compressed gross margins, and increased administrative and operating expenses.
• Gross Profit Margin: Gross profit fell sharply by 57.8% YoY, from \$3.29 million to \$1.39 million, reflecting price competition and lower capacity utilization.
• Expenses: Administrative expenses rose 20.6% due to higher salaries, and other operating expenses increased 41.4% due to forex losses and higher depreciation.
• Cash Position: Cash and cash equivalents declined from \$18.39 million to \$16.36 million, mainly due to capex, lease payments, and operating losses.
• Dividends: No dividends were declared for FY2025 or FY2024.

Significant Events and Corporate Actions

• Asset Additions: \$0.97 million was spent on machinery, equipment, and vehicles; \$0.94 million was recognized for right-of-use assets.
• Lease Liabilities: Lease liabilities rose by \$0.64 million due to new and renewed contracts.
• Subsidiary Liquidation: Acesian Star (S) Pte Ltd, a wholly-owned subsidiary, is under liquidation. The carrying amount of its net liabilities is -\$151,000. The Group faces restrictions on accessing or using ASPL’s assets.
• Treasury Shares: No buybacks in FY2025. Treasury shares stand at 25,846,722, or 5.47% of issued share capital (excluding treasury shares).
• Related Party Transactions: Purchases from Chern Dar Enterprise Co. Ltd. amounted to \$119,000, classified as an interested person transaction under Rule 920.

Chairman’s Statement

“The market was highly competitive, as new duct players entered and competed for a limited number of greenfield and major projects in Southeast Asia. This dynamic is expected to persist amid an increasingly unpredictable global operating environment. Momentum in the duct business, which gained pace in the second half of 2025 compared with the first half, is anticipated to continue along its current trajectory, barring unforeseen circumstances. The Group remains vigilant in monitoring market conditions and is proactively pursuing business opportunities.”

Tone Assessment: The Chairman’s statement is cautiously optimistic. While the competitive environment and project pipeline remain challenging, the recent improvement in order intake and revenue signals some recovery. Management is positioning the Group to capture new opportunities while maintaining cost discipline.

Outlook and Guidance

• The Group expects the competitive landscape to persist and is monitoring macroeconomic uncertainties. Revenue momentum seen in 2H FY2025 is anticipated to continue in the near term, especially in the semiconductor sector.
• No dividend is expected in the near term as the company remains loss-making and is focused on business recovery.

Conclusion and Investment Recommendations

Overall Assessment: Acesian Partners’ FY2025 results show a challenging year with a significant loss and a sharp drop in revenue and margins. The improved 2H performance suggests some stabilization, but the company remains in a turnaround phase with heightened risks from competition, project deferrals, and cost pressures.

• If you are currently holding the stock:
  Consider maintaining a cautious stance. The improved second-half performance and management’s proactive approach to new business may offer some upside if the order pipeline recovers. However, the absence of dividends and the significant loss position increase risk. Consider reducing exposure if there is no clear sign of sustained recovery over the next quarters.
• If you are not currently holding the stock:
  It may be prudent to stay on the sidelines until the Group demonstrates a consistent return to profitability and clearer growth in revenue. Investors seeking income should be aware that dividends are unlikely in the near term.

Disclaimer: This analysis is based strictly on information provided in the company’s FY2025 financial report. It does not constitute investment advice. Please consult your financial advisor before making investment decisions.

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