Sasbadi Holdings Berhad: Second Quarter 2026 Financial Report – Detailed Investor Analysis

Executive Summary

Sasbadi Holdings Berhad has released its unaudited consolidated financial results for the second quarter ended 28 February 2026. The report outlines a mixed performance, with significant developments in both print publishing and digital education segments. Several key events and initiatives have the potential to impact shareholder value and future growth trajectory.

Key Financial Highlights

• Revenue Decline: The Group recorded quarterly revenue of RM37.67 million, a decrease of 9.72% compared to RM41.73 million in the same quarter last year. This was mainly attributed to reduced sales in the Print Publishing Division, which fell from RM41.42 million to RM30.83 million.
• Profit Before Tax (PBT): PBT dropped to RM7.49 million from RM11.62 million, representing a decrease of 35.56%. The decline was primarily due to lower revenues.
• Year-to-Date Performance: Revenue for the six months ended February 2026 was RM68.98 million, down 8.98% year-on-year. PBT for the period was RM15.64 million, down 19.69%.
• Dividend: The Company paid a second interim single-tier dividend of RM0.0025 per share on 23 December 2025 for the previous financial year. Additionally, the Board declared an interim dividend of RM0.005 per share for the current financial year, payable on 15 June 2026.

Key Developments and Price-Sensitive Information

• Acquisition Impact: The acquisition of Edu Paper and Stationery Sdn. Bhd. (EPSSB) in March 2025 contributed RM5.37 million in quarterly revenue, helping to offset some declines in print publishing. EPSSB’s overall performance also contributed RM10.05 million to year-to-date revenue.
• Ministry of Education Tenders: The Group successfully secured textbook contracts under the new Kurikulum Persekolahan 2027 (KP2027) cycle, winning three contracts for National-type Chinese School (SJKC) Year One subjects and two for National Secondary School (SMK) Form One subjects, totaling RM17.23 million. These tenders are expected to continue annually until 2031, providing a visible pipeline for future revenue and earnings growth.
• Digital Education Initiatives:
  • The Group’s participation in the Ministry of Education’s AI-Powered Classroom Pilot Project (AIPCP) has shown positive results for its AI-powered solution, Ace-it, with constructive feedback from teachers and students across 20 schools nationwide.
  • The Group is preparing a Pilot Project Evaluation Report for MOE, which may influence broader adoption and commercialisation opportunities for Ace-it, especially in schools with digital infrastructure.
• Potential Collaboration with Intel and Maistorage:
  • On 28 January 2026, a Memorandum of Understanding was signed with Intel Microelectronics and Maistorage Technology to explore joint delivery of AI-enabled learning environments in Southeast Asia. Intel has provided next-generation hardware for benchmarking, and Maistorage has integrated its proprietary middleware for testing.
  • This collaboration targets the development of an on-premise AI-Powered Classroom solution, leveraging Sasbadi’s educational content and Maistorage’s aiDAPTIV+ software, running on Intel’s platform. Although the MOU is non-binding, any future binding agreements could be significant for the Group’s expansion into AI-driven educational technology.

Operational and Market Insights

• Seasonality: Sasbadi’s business remains cyclical, with higher sales approaching the academic year. The normalisation of the school reopening to January in 2026 resulted in revenue recognition shifts.
• Segment Performance: While print publishing saw declines, digital solutions and STEM education segments saw revenue increases. The Digital Solutions & Network Marketing Division benefited from MOE tenders for English language proficiency testing and digital storybooks.
• No Material Events or Litigation: No material events subsequent to the quarter, no pending litigation, and no changes in contingent assets or liabilities.
• Capital Commitments: No material capital commitments at quarter-end.

Outlook and Prospects

The Group remains optimistic for FY2026 and beyond. Secured textbook tenders and ongoing participation in MOE’s curriculum procurement are expected to underpin future revenue streams. The digital education front is gaining traction, with Ace-it positioned for broader commercialisation. The AI collaboration with Intel and Maistorage could be transformative if it progresses to binding agreements, potentially establishing Sasbadi as a leader in AI-driven educational solutions.

Dividend and Shareholder Returns

Shareholders should note the interim dividend declaration for the current year, reflecting management’s confidence in ongoing cash flows and profitability. The dividend payout and the Group’s investment in new digital and AI solutions signal a balanced approach to rewarding shareholders while pursuing long-term growth.

Potential Share Price Catalysts

• Secured textbook contracts under KP2027 with recurring annual tenders until 2031.
• Positive outcomes and commercialisation potential from MOE’s AI pilot project.
• Ongoing collaboration with Intel and Maistorage for AI-Powered Classroom solutions, which could open new regional markets and revenue streams.
• Continued dividend payouts, acquisition-driven revenue growth, and strong positioning in both print and digital education segments.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should review the full financial report and consult with their financial advisors before making any investment decisions. Sasbadi Holdings Berhad’s future performance may be influenced by market conditions, regulatory changes, and the execution of corporate strategies outlined herein.

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