MyAxis Group Berhad Announces Strong Half-Year Performance and Positive Outlook

Key Financial Highlights for 1st Half-Year Ended 31 January 2026

• Revenue: RM121.18 million, all generated in Malaysia. The bulk of revenue (RM116.91 million or 96.48%) came from sourcing and distribution of frozen meat products, with RM4.27 million (3.52%) contributed by processed meat products.
• Profit Before Tax (PBT): RM3.23 million.
• Profit After Tax (PAT): RM2.27 million.
• Gross Profit: RM6.08 million.
• Basic/Diluted Earnings Per Share (EPS): 0.66 sen.
• Net Assets Per Share: RM0.05 (based on 340,800,000 ordinary shares).

Balance Sheet and Financial Position

• Total Assets: RM41.72 million (up from RM36.55 million as at 31 July 2025).
• Total Equity: RM16.49 million (up from RM14.23 million).
• Retained Earnings: RM8.82 million (up from RM6.55 million).
• Loans and Borrowings: Increased non-current borrowings to RM7.90 million, current borrowings at RM12.17 million.
• Cash and Bank Balances: RM7.39 million, a decrease from RM13.23 million at the start of the period.

Cash Flow Analysis

• Net Cash Used in Operating Activities: RM3.18 million (notably negative due to changes in receivables and inventories).
• Net Cash Used in Investing Activities: RM445k (mainly for purchase of property, plant and equipment, and leased assets).
• Net Cash Used in Financing Activities: RM2.22 million (repayment of borrowings and interest payments).
• Cash and Cash Equivalents at Period End: RM7.39 million.

Operational and Segment Insights

• The Group’s business is mainly meat product sourcing and distribution, with processed meat sales forming a small but growing segment.
• The Group’s revenue is primarily driven by B2B container sales customers, indicating a focus on wholesale and institutional buyers.
• All revenues are from Malaysia; investment holding is not a reportable segment.

Important Shareholder Information

• No dividends declared or proposed during the period.
• No unusual items affecting assets, liabilities, equity, net income, or cash flows.
• No material changes in accounting estimates or judgements.
• No issuance, cancellation, repurchase, resale, or repayment of debts/equity securities during the quarter.
• No changes in valuation of property, plant and equipment.
• No contingent liabilities or assets identified.
• No material litigation as at the report date.
• Related party transactions: Rental paid to a director (RM17,000) and to a related party (RM10,000).

Corporate Actions and Use of Proceeds

• The Company raised RM5.29 million from the issuance of 44,096,945 ordinary shares at RM0.12 each (Placement in conjunction with listing on LEAP Market).
• Utilisation of proceeds (as at 17 March 2026):
  • Purchase of machinery: RM595k (not yet utilised)
  • Brand establishment: RM200k (not yet utilised)
  • Repayment of bank borrowings: RM3 million (fully utilised)
  • Working capital: RM495k (not yet utilised)
  • Listing expenses: RM1 million (fully utilised)
  • Total utilised: RM4 million; balance: RM1.29 million
• The Company was listed on LEAP Market of Bursa Securities on 30 June 2025.

Outlook and Prospects

• Directors remain optimistic about the Group’s prospects, citing continued demand for meat products in Malaysia.
• Independent market research (Providence Strategic Partners Sdn Bhd) estimates the Malaysian meat market grew from RM11.2 billion (2019) to RM16.5 billion (2024) at CAGR of 8.1%.
• Further growth is projected (CAGR 6.1%) from RM17.5 billion (2025) to RM19.7 billion (2027).
• The Group will continue to focus on stable sourcing, supply, and expand processed meat offerings. It will also leverage halal certification for regional market expansion where suitable.
• Directors believe operational efficiencies provide a basis for ongoing stability, subject to market conditions.

Potential Price-Sensitive Information

• Strong revenue and profit may positively affect share price, especially considering the Group’s growth prospects in a robust meat market.
• Cash flow is negative for the period due to working capital changes; investors should monitor future liquidity.
• Utilisation of placement proceeds: Most funds are yet to be invested in machinery, branding, and working capital, which could drive future growth and profitability.
• No dividend may affect investor sentiment seeking income, but retained earnings are growing.
• No material litigation, contingent liabilities, or adverse events – provides stability and confidence.
• Directors’ optimism, continued operational focus, and market growth projections are positive signals for future share value.
• No profit forecast or guarantee issued – investors should rely on actual performance and market conditions.

Seasonal Factors

• The Group’s business is subject to seasonal demand, with higher sales before and during festive seasons (Hari Raya, Christmas, Chinese New Year). This may lead to revenue fluctuations and potential price movements around these periods.

Conclusion

MyAxis Group Berhad’s half-year results reflect robust revenue growth, profitability, and positive market prospects, underpinned by a strong position in Malaysia’s growing meat sector. The Group’s focus on processed meat expansion, stable sourcing, and potential regional market entry via halal certification could support further growth. Investors should note the negative operating cash flow, pending utilisation of placement proceeds, and absence of dividends, which may impact short-term sentiment but provide potential for future expansion and shareholder value. No major risks or adverse events were reported, supporting confidence in the Group’s stability.

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 professional advisors before making investment decisions. The information is based on unaudited financial results and may be subject to change.

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