Olympia Industries Berhad Q1 2026 Results – Investor Update

Key Financial Highlights

• Revenue: Olympia Industries Berhad (“Olympia” or “the Group”) posted a 3.8% year-on-year increase in consolidated revenue for the first quarter ended 31 March 2026, reaching RM24.8 million, up from RM23.9 million in Q1 2025. The gaming division remained the main revenue driver, contributing RM19.1 million or 77% of total revenue.
• Losses Narrowed: The Group recorded a net loss after tax of RM1.58 million, a significant improvement from the RM3.44 million loss in the previous corresponding quarter. Loss before tax was reduced to RM1.44 million from RM3.44 million previously, marking a 58.1% improvement.
• Segment Performance:
  • Property Development: This segment returned to profitability with RM1.83 million profit before tax, primarily due to the sale of an inventory unit during the quarter (none in Q1 2025).
  • Gaming: The gaming segment reported RM925,000 profit before tax, though lower than last year, attributed to a slightly lower payout ratio (61.4% vs 61.9%).
  • Leasing: The leasing division (Menara Olympia) suffered a higher loss of RM2.46 million, mainly due to persistently low occupancy rates following the non-renewal of major tenants.
• Cash Flows: Net cash generated from operating activities was RM7.33 million (Q1 2025: outflow of RM7.45 million). Cash and cash equivalents rose to RM10.9 million from RM7.16 million at the start of the year.
• Borrowings and Liquidity: The Group’s total borrowings stood at RM142.99 million as of 31 March 2026, with a major secured term loan of RM105 million due for full repayment in August 2026. The Group remains in discussions with lenders for restructuring and extension of this key facility.
• Net Current Liabilities: Current liabilities exceeded current assets by RM174.99 million, highlighting ongoing liquidity pressure.

Material Developments and Price Sensitive Issues

• Going Concern Uncertainty: The Group’s auditors previously raised a material uncertainty related to going concern. Although the Board believes the Group can continue as a going concern (due to plans for raising financing, asset sales, and lender support), there remain significant uncertainties, particularly relating to the refinancing or extension of the RM105 million term loan due August 2026. Failure to secure refinancing or to dispose of assets as planned could materially impact the Group’s ability to continue operating.
• Asset Disposal and Financing Plans: The Group has earmarked certain land (carrying value: RM57.2 million) for disposal as part of the term loan repayment negotiations. It also has unencumbered assets worth RM151.5 million which may be used for further financing or sale to reduce borrowings.
• Termination of Consortium and Development Agreements: On 14 April 2026, Olympia announced the proposed termination of a major joint-venture agreement (Consortium Agreement of 2003 and Development Agreement of 2007) with KH Estates Sdn Bhd and related parties. This is a related party transaction requiring non-interested shareholder approval. The assets tied to this agreement have a market value of about RM799.6 million. The termination will result in a distribution of assets, liabilities, income, and expenses according to an agreed ratio (42% to Olympia’s subsidiary, 58% to the partner). This development has the potential to unlock asset value and impact the Group’s future earnings and balance sheet structure.
• Dividend: No dividend was declared or paid for Q1 2026. The Group has not declared dividends for the previous financial year (2025) either, reflecting the focus on liquidity and debt reduction.
• Capital Commitments: Minimal capital expenditure commitments remain, with RM300,000 approved and contracted for upgrading works.
• Litigation: No new material litigation was reported during the period.
• Accounting Standards: Adoption of new Malaysian Financial Reporting Standards (MFRS 18 and others from 2027 onwards) will require changes in presentation and disclosures in future, but no material impact is expected on the underlying financials.

Prospects

• The Group expects the property development segment to remain quiet, with no new launches anticipated until market conditions improve. The leasing division is expected to report better performance for the rest of 2026 as the Group pursues higher occupancy rates. The gaming division is anticipated to continue its recovery post-pandemic, with stable or improving sales and profitability. The Board remains cautiously optimistic about the resilience of the Malaysian economy and expects operational recovery to be maintained at current levels.

Key Risks for Shareholders

• Liquidity and Refinancing Risk: The single biggest risk remains the impending maturity of the RM105 million term loan in August 2026. The Group’s ability to secure refinancing, obtain further bank indulgence, or effect asset disposals is crucial. Any negative development here could have severe consequences for the Group’s solvency and share price.
• Asset Monetisation: The successful disposal of earmarked assets and use of unencumbered land for financing are critical to the Group’s deleveraging and future viability.
• Operational Turnaround: Sustained low occupancy at Menara Olympia and any adverse change in gaming revenue or regulatory environment could further strain results.
• Related Party Transaction: The Consortium Agreement termination and asset division could materially affect future earnings, asset base, and potentially unlock or impair value, depending on execution and market conditions.

Conclusion

The Q1 2026 results of Olympia Industries Berhad indicate a stabilisation and improvement in the Group’s core operating performance, particularly in property development and gaming. However, investors should pay close attention to the Group’s high gearing, pending major loan maturity, and the outcome of asset sales and joint venture restructurings. These factors are likely to drive the share price in the coming quarters, and any negative developments on refinancing or asset monetisation could significantly impact shareholder value.

Disclaimer

This article is prepared for informational purposes only and does not constitute investment advice. Investors should consult their financial advisors and refer to the official company announcements and filings before making investment decisions. The author and publisher accept no liability for investment actions taken based on this article.

Kemaskini Pelabur: Keputusan Suku Pertama 2026 Olympia Industries Berhad

Sorotan Kewangan Utama

• Hasil: Olympia Industries Berhad mencatatkan peningkatan hasil sebanyak 3.8% tahun ke tahun untuk suku pertama berakhir 31 Mac 2026, iaitu RM24.8 juta berbanding RM23.9 juta suku yang sama tahun sebelum. Bahagian gaming kekal sebagai penyumbang utama, dengan RM19.1 juta (77% daripada jumlah hasil).
• Kerugian Berkurang: Kumpulan mencatatkan kerugian selepas cukai sebanyak RM1.58 juta, bertambah baik dari kerugian RM3.44 juta tahun sebelumnya. Kerugian sebelum cukai juga berkurang kepada RM1.44 juta dari RM3.44 juta.
• Pencapaian Segmen:
  • Pembangunan Hartanah: Kembali mencatat untung sebelum cukai RM1.83 juta, terutamanya hasil jualan unit inventori (tiada dalam Q1 2025).
  • Gaming: Untung sebelum cukai RM925,000, lebih rendah berbanding tahun lalu, disebabkan kadar pembayaran (payout ratio) yang sedikit rendah.
  • Penyewaan: Menara Olympia terus mencatat kerugian lebih tinggi (RM2.46 juta) akibat kadar penghunian yang rendah.
• Aliran Tunai: Aliran tunai operasi adalah RM7.33 juta (Q1 2025: -RM7.45 juta). Tunai dan setara tunai meningkat ke RM10.9 juta dari RM7.16 juta pada awal tahun.
• Pembiayaan & Kecairan: Jumlah pinjaman RM142.99 juta setakat 31 Mac 2026. Pinjaman penting RM105 juta akan matang pada Ogos 2026. Kumpulan sedang berunding untuk pelanjutan atau penstrukturan semula pinjaman ini.
• Liabiliti Semasa Bersih: Liabiliti semasa melebihi aset semasa sebanyak RM174.99 juta, menandakan tekanan kecairan berterusan.

Perkembangan Material & Isu Sensitif Harga

• Ketidaktentuan Kelangsungan Perniagaan: Juruaudit sebelum ini menekankan ketidaktentuan material berkaitan kelangsungan perniagaan. Lembaga Pengarah yakin Kumpulan akan terus beroperasi berdasarkan rancangan pembiayaan dan pelupusan aset, namun risiko kekal tinggi terutama berkaitan penstrukturan semula pinjaman RM105 juta.
• Pelupusan Aset & Rancangan Pembiayaan: Tanah bernilai RM57.2 juta telah dikenal pasti untuk dijual sebagai sebahagian daripada rundingan pembayaran semula pinjaman. Aset tidak dicagarkan bernilai RM151.5 juta juga boleh digunakan untuk pembiayaan tambahan atau pelupusan.
• Penamatan Perjanjian Konsortium: Pada 14 April 2026, Olympia mengumumkan penamatan perjanjian utama usaha sama dengan KH Estates Sdn Bhd. Penamatan ini akan melibatkan pengagihan aset dan liabiliti mengikut nisbah dipersetujui (42% kepada Olympia, 58% kepada rakan usaha sama). Nilai pasaran aset berkaitan dianggarkan RM799.6 juta. Perkembangan ini berpotensi membuka nilai aset atau menjejaskan struktur kewangan masa depan Olympia.
• Dividen: Tiada dividen diisytiharkan atau dibayar untuk suku ini atau tahun kewangan sebelumnya, mencerminkan tumpuan kepada kecairan dan pengurangan hutang.
• Komitmen Modal: Komitmen perbelanjaan modal minimum, RM300,000 diluluskan dan dikontrakkan untuk kerja naik taraf.
• Litigasi: Tiada litigasi material baru dilaporkan.
• Piawaian Perakaunan: Piawaian MFRS baru akan menuntut perubahan persembahan kewangan pada masa depan, namun tiada impak material kepada asas kewangan dijangka.

Prospek

• Sektor pembangunan hartanah dijangka kekal perlahan tanpa pelancaran produk baru sehingga pasaran bertambah baik. Penyewaan dijangka bertambah baik pada baki tahun 2026. Gaming dijangka terus pulih pasca pandemik dengan prestasi jualan dan keuntungan yang stabil atau lebih baik. Lembaga optimis terhadap daya tahan ekonomi Malaysia dan jangka pemulihan operasi diteruskan pada tahap semasa.

Risiko Utama Kepada Pemegang Saham

• Risiko Kecairan dan Pembiayaan Semula: Risiko terbesar adalah kematangan pinjaman RM105 juta Ogos 2026. Keupayaan Kumpulan mendapatkan pembiayaan semula atau melupuskan aset sangat kritikal; kegagalan boleh menjejaskan kelangsungan dan harga saham.
• Pelupusan Aset: Kejayaan pelupusan aset dan penggunaan tanah tidak dicagarkan adalah penting untuk mengurangkan hutang dan menjamin masa depan Kumpulan.
• Pemulihan Operasi: Penghunian rendah berterusan di Menara Olympia dan sebarang perubahan negatif dalam hasil gaming boleh jejaskan prestasi kewangan.
• Penamatan Usaha Sama: Penamatan dan pengagihan aset konsortium boleh memberi impak material kepada pendapatan dan nilai aset masa depan, bergantung kepada pelaksanaan dan pasaran.

Kesimpulan

Keputusan Q1 2026 menunjukkan prestasi operasi Olympia Industries Berhad semakin stabil. Namun, para pelabur perlu memberi perhatian kepada tahap hutang tinggi, kematangan pinjaman utama, dan hasil pelupusan aset serta penstrukturan usaha sama. Faktor-faktor ini berpotensi menggerakkan harga saham dalam suku akan datang, dan sebarang perkembangan negatif boleh memberi impak besar kepada nilai pemegang saham.

Penafian

Artikel ini disediakan untuk tujuan maklumat sahaja dan bukan nasihat pelaburan. Pelabur dinasihatkan merujuk penasihat kewangan masing-masing dan dokumen rasmi syarikat sebelum membuat sebarang keputusan pelaburan. Penulis dan penerbit tidak bertanggungjawab atas sebarang tindakan pelaburan berdasarkan artikel ini.

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