UCrest Berhad Releases Q3 FY2026 Results: Key Highlights for Investors

Overview

UCrest Berhad has published its unaudited financial results for the period ended 28 February 2026. The results show a challenging quarter for the Group, marked by a net loss, declining revenue, and ongoing efforts for business transformation. Below are the key points and details that shareholders and potential investors should note.

Key Financial Performance

• Revenue: For the quarter ended 28 February 2026, UCrest Berhad reported revenue of RM3.594 million, a sharp decrease from RM6.515 million in the corresponding quarter last year. On a cumulative year-to-date basis, revenue declined to RM9.693 million from RM13.778 million in the previous year.
• Net Profit/(Loss): The Group recorded a net loss attributable to owners of the Company of RM0.795 million for the quarter, compared to a net profit of RM1.653 million in the same quarter last year. Cumulatively, net profit for the period was RM0.886 million, down from RM3.503 million previously.
• Gross Profit: Gross profit for the current quarter stood at RM0.539 million, down from RM1.111 million a year ago. Year-to-date gross profit was RM1.595 million, compared with RM2.629 million for the previous period.
• Total Comprehensive Loss: The Group posted a total comprehensive loss of RM3.051 million for the quarter, driven mainly by foreign currency translation losses (RM2.256 million), compared to a comprehensive profit of RM1.785 million previously.
• Loss Per Share: Basic and diluted loss per share for the quarter were both (0.11) sen, down from earnings per share of 0.22 sen in the comparative period. Year-to-date EPS was 0.12 sen compared to 0.47 sen last year.

Operating and Cash Flow Analysis

• Other Income: Other income for the current quarter was RM48,000, significantly lower than RM1.779 million in the corresponding period, due to the absence of large reversals of impairment losses seen last year.
• Expenses: Administrative and general expenses rose to RM1.143 million from RM1.055 million for the quarter. No selling and distribution expenses were reported.
• Depreciation & Amortisation: Total depreciation and amortisation for the quarter were RM233,000, up from RM181,000.
• Foreign Exchange Impact: The Group incurred a foreign exchange loss of RM147,000 in the quarter, compared to a loss of RM45,000 in the previous period.
• Operating Cash Flow: Net cash generated from operating activities amounted to RM0.856 million for the period, but after investing activities (notably, RM4.115 million spent on intangible assets), the Group saw a net decrease in cash and cash equivalents of RM3.394 million.
• Cash Position: Cash and cash equivalents stood at RM10.3 million as at 28 February 2026, down from RM17.538 million at the previous financial year-end.

Balance Sheet Highlights

• Total Assets: RM46.635 million as at 28 February 2026, down from RM50.965 million as at 31 May 2025.
• Equity: Total equity attributable to owners was RM41.852 million, compared to RM44.308 million previously.
• Net Assets Per Share: Remained stable at 6 sen per share.
• Receivables: Notably, non-current trade receivables reduced from RM20.321 million to RM11.290 million, while current trade receivables increased from RM11.172 million to RM19.188 million, reflecting collection and invoicing cycles.
• Intangible Assets: Increased significantly to RM4.863 million from RM1.240 million, likely due to ongoing development and capitalisation of the imedic platform and related technology.

Corporate Developments and Capital Management

• Private Placement: Shareholders approved a private placement of up to 74,383,000 new shares (not more than 10% of issued share capital) at the AGM on 18 November 2024. As of the report date, no new shares had been issued. Bursa Malaysia has granted an extension until 23 October 2026 to complete the placement. This could be price sensitive as the placement, when executed, may dilute existing shareholders but also provide additional capital for growth initiatives.
• No Dividends: No interim dividends were declared or paid during the period, reflecting the Group’s focus on conserving cash and investing in business development.
• No Significant Borrowings: The Group continues to operate with minimal debt and no bank overdraft.
• No Material Litigation or Off Balance Sheet Items: The Group reported no material litigation, borrowings, or off-balance sheet financial instruments.

Segmental and Geographical Performance

• Geographical Revenue: Virtually all revenue was generated internationally (RM3.594 million for the quarter), with negligible sales from Malaysia. This exposes the Group to foreign exchange risks, as reflected in the significant translation losses impacting comprehensive income.

Business Review and Outlook

• Platform Development: The Group is progressing with the rollout and scaling of its imedic platform, enhancing e-commerce functionality and broadening healthcare-related offerings. This transformation is expected to diversify revenue streams but is still in the early stages of market adoption.
• Longevity-Focused Solutions: Preliminary market engagement for longevity-related solutions has begun, with some interest, though these have yet to contribute meaningfully to financial results.
• Cost Management: Management remains focused on disciplined cost control and incremental improvements in platform conversion and utilisation.
• Prospects: Barring unforeseen circumstances, the Board views the Group’s prospects as stable, but subject to economic conditions, regulatory developments, and execution risks inherent to its business model.

Risks and Considerations for Investors

• Revenue Volatility: The sharp decline in revenue and profitability underscores ongoing business challenges and the risk that the Group may continue to report losses if new initiatives do not gain traction.
• Foreign Exchange: The Group is highly exposed to foreign currency fluctuations, which have had a significant negative impact on comprehensive income.
• Potential Share Dilution: The approved private placement, if carried out, may dilute existing shareholders but could also provide crucial capital for strategic initiatives.
• Intangible Asset Investment: Significant investment in intangible assets (technology/platform) points to a strategic bet on future growth, but also increases risk if returns are not realised.

Conclusion

The latest results from UCrest Berhad indicate a challenging operating environment, with declining revenues, net losses, and heavy investment in platform development. The approved private placement and the Group’s shift towards healthcare e-commerce and longevity solutions are key developments investors should monitor, as they have the potential to materially affect the company’s prospects and share value. Investors are advised to stay alert for future updates, especially regarding the timing and terms of the private placement and evidence of traction in new business segments.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the full financial statements and consult their advisors before making any investment decisions. The information herein is based on UCrest Berhad’s unaudited financial results for the period ended 28 February 2026 and may be subject to change or revision.

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