Sim Leisure Group FY2025 Results: Revenue Declines, Net Profit Rises, Proposed Final Dividend of RM0.04 per Share

Sim Leisure Group Ltd. FY2025 Financial Analysis

Sim Leisure Group Ltd., a Singapore-listed company specializing in theme park operations and themed attraction construction, released its full-year and interim financial statements for the period ended 31 December 2025. Below, we analyze key financial metrics, performance trends, dividend proposals, segmental results, and strategic outlook.

Key Financial Metrics and Performance Overview

Metric	H2 FY2025	H1 FY2025	H2 FY2024	YoY Change	QoQ Change
Revenue (RM’000)	65,181	72,934	81,021	-19.6%	-10.6%
Operating Profit After Tax (RM’000)	34,277	9,280	18,080	+89.6%	+269%
EPS (RM cents)	20.95	3.61	7.27	+188%	+480%
Final Dividend (RM per share)	0.04 (proposed)	N/A	0.03	+33%	N/A

Historical Performance Trends

Revenue: FY2025 saw a 17.7% decrease in total revenue to RM138.1 million, primarily due to the near-completion of the Six Flags Qiddiya project in Saudi Arabia. Theme park segment revenue increased by 5.1% YoY, supported by higher visitor numbers and new park openings.
Gross Profit: Gross profit dropped from RM83.1 million to RM47.9 million, reflecting lower margins from the construction segment and higher operating costs from newly opened parks.
Exceptional Income: Other income surged due to a one-off compensation of RM42.98 million for early termination of the ESCAPE @ KL Base Theme Park Agreement.
Net Profit: Despite lower revenue, net profit rose 20.5% to RM43.6 million, driven by exceptional income and improved operational efficiency.
EPS: EPS for FY2025 increased to 24.76 cents from 13.85 cents in FY2024.

Segmental Analysis

Theme Park Operations: Revenue grew to RM82.47 million, supported by new indoor ESCAPE Challenge Parks in Johor Bahru and Putrajaya and efficiency gains at established parks.
Theme Attractions Construction: Revenue declined sharply to RM55.64 million due to project completion, but new contracts like Al Nahda Entertainment Complex in Riyadh are expected to drive growth in FY2026.

Dividend Proposal

FY2025 Final Dividend: Proposed at RM0.04 per share, up from RM0.03 per share in FY2024.
Total Dividend Payout: RM4.97 million for FY2025 (subject to shareholder approval).

Exceptional Earnings and Expenses

One-off Compensation: RM42.98 million recognized as other income due to early termination of KL Base Theme Park Agreement.
Impairment Losses: Slight increase in impairment of trade and other receivables (RM0.05 million) related to contract termination and non-payment.

Notable Corporate Actions and Events

Closure of ESCAPE Challenge Park, Petaling Jaya: Due to revised rental rates and mall operator actions; operations consolidated at Putrajaya location.
International Expansion: Incorporation of Guangzhou Sim Leisure Amusement Co., Ltd. in China, with RMB100 million registered capital, marks entry into PRC leisure market.
New Projects: Al Nahda Entertainment Complex in Saudi Arabia is expected to drive construction segment growth in FY2026.

Related Party Transactions

Interest expense of RM188,000 incurred on loans from a non-executive director, who resigned in January 2025.

Cash Flow and Balance Sheet Strength

Cash Position: Cash and bank balances increased significantly to RM88.9 million (from RM47.3 million), boosted by compensation income.
Working Capital: Positive working capital of RM84.17 million at year-end, up from RM59.65 million.
Net Asset Value: NAV per share increased to RM91.08 from RM70.47.

Chairman’s Statement

“The Group’s continued drive for operational efficiency and strategic expansion delivered meaningful results in the financial year ended 31 December 2025 (“FY2025”). Two new indoor ESCAPE Challenge Parks were launched in Johor Bahru and Putrajaya, reinforcing our footprint. Efficiency initiatives improved margins across established parks and helped mitigate gestation losses at KidZania Singapore and ESCAPE Ipoh. Following a recent upward revision in rental rates and unilateral actions by the mall operator, our first indoor ESCAPE Challenge Park in Petaling Jaya was closed at year end, with operations consolidated at the Group’s Putrajaya ESCAPE Challenge Park. This closure is not expected to materially impact overall performance. Despite global trade uncertainties and softening of consumer’s discretionary spending, the Group remains cautiously optimistic about its theme park outlook, particularly with its strategic expansion into the People’s Republic of China (“PRC”). This confidence is underpinned by ongoing efficiency gains, customer experience enhancements, and the rollout of the ESCAPE and SIMall concept brands…”

Tone: The Chairman’s statement is positive and forward-looking, emphasizing operational resilience, strategic expansion, and optimism regarding new markets and products.

Strategic Outlook and Forecasted Events

Theme park segment is expected to benefit from new attractions (e.g., Malaysia’s first mega swing, three-acre Water World zone) and digital upgrades (Melon wallet platform).
The construction segment anticipates higher revenue recognition in FY2026 from Al Nahda project and ongoing international expansion.
The Group is actively pursuing new opportunities in China and the Middle East.

Conclusion and Recommendations

Overall Assessment: Sim Leisure Group Ltd. delivered a resilient performance in FY2025, with net profit and EPS rising despite lower revenue, largely due to one-off compensation and operational improvements. Strong cash flows, increased NAV, and positive working capital indicate financial strength. The outlook is cautiously optimistic, with growth expected from new projects and international expansion, though segmental revenue volatility and macroeconomic risks warrant attention.

If Holding: Investors currently holding Sim Leisure shares may consider maintaining their positions, given the company’s robust cash position, proposed dividend increase, and positive outlook. The Group’s expansion into China and execution of new contracts in Saudi Arabia offer potential upside. However, monitor for sustained revenue recovery in the construction segment and risks related to project delays or macroeconomic shifts.

If Not Holding: Investors not currently holding Sim Leisure shares may consider the stock for its growth prospects, dividend yield, and expanding international footprint. Entry is best timed alongside evidence of stable revenue from new contracts and continued operational efficiency.

Disclaimer: This article is based solely on information disclosed in Sim Leisure Group Ltd.’s FY2025 financial report. It does not constitute investment advice. Investors should perform their own due diligence and consider personal risk tolerance before making any investment decisions.