Suria Capital Holdings Berhad Q1 2026 Financial Results and Key Corporate Updates
Key Highlights for Investors
- Revenue and Profitability: The Group reported revenue from operations of RM42.3 million for the quarter ended 31 March 2026, a decrease of 4% year-on-year (YoY) from RM44.2 million. Profit before tax fell 41% YoY to RM9.1 million, largely due to lower contributions from the property development segment and higher non-recurring expenses.
- Segment Performance: Port operations remained the main revenue driver, contributing 87.8% of total revenue and 68.7% of profit before tax. Property development and leasing suffered a significant decline, with revenue share dropping to 1.3% due to the absence of a large land sale recorded in the previous year.
- Notable Non-Recurring Expenses: A non-recurring write-off of RM1.52 million in property, plant, and equipment, arising from the relocation of ferry terminal operations, affected the quarter’s results.
- Ferry Terminal Operations Relocation: The ferry terminal was officially relocated to the South Jetty in March 2026. This move is expected to enhance operational efficiency, improve passenger capacity, and unlock new commercial opportunities.
- Strategic Diversification into Power Generation: In a potentially price-sensitive and transformative development, Suria Capital, via SCHB Engineering Services Sdn. Bhd. (SCES), together with NRG Consortium (Sabah) Sdn. Bhd., has received approval to develop a 100MW Gas Peaking Plant in Kimanis, Sabah. The Group proposes to diversify into the power generation business, subject to shareholder approval at an upcoming EGM. If approved, this may significantly alter the Group’s earnings profile and long-term prospects.
- Strong Cash Position: Cash and cash equivalents increased to RM85.3 million as at 31 March 2026, up from RM69.4 million at the previous year-end, reflecting robust cash flow from operating activities.
- Dividend: No dividend was paid during the quarter, nor was any interim dividend declared for the period.
- Contingent Liabilities: The Group is involved in an arbitration proceeding with an application to set aside an arbitral award filed in April 2026. The outcome and financial impact remain uncertain at this stage.
- Capital Commitments: The Group has approved and contracted capital expenditures of RM25.0 million for port infrastructure, with a further RM97.1 million approved but not yet contracted. The Group is also in the early stages of the Kimanis power project and has not yet entered binding agreements for the project.
Detailed Financial and Operational Review
Financial Performance
The Group’s total revenue for Q1 2026 was RM46.4 million, virtually flat YoY (RM46.1 million in Q1 2025). Revenue comprises RM42.3 million from operations and RM4.1 million from construction services related to concession infrastructure upgrades—this construction revenue had no impact on gross profit, as it was offset by an equal construction cost.
Gross profit declined 12% YoY to RM12.5 million. Other income fell notably to RM3.6 million (Q1 2025: RM7.1 million), while administrative and other expenses increased, including the aforementioned asset write-off. Net profit attributable to shareholders was RM4.4 million, down from RM12.0 million a year earlier, translating to basic earnings per share of 1.27 sen (Q1 2025: 3.48 sen).
Segment Analysis
- Port Operations: Remains the core business, with Sabah Ports Sdn Bhd operating eight ports in Sabah. General cargo throughput decreased by 1% following the transfer of RORO operations, while container volumes (excluding associate contributions) fell 5% to 31,747 TEUs, mainly due to shipment deferments from geopolitical and energy disruptions. However, including volumes handled by its associate DP World Sabah, total container volumes increased by 6% YoY to 97,466 TEUs.
- Property Development & Leasing: Declined sharply due to the absence of a significant land sale. Occupancy rate at Gallery Shoppes stands at 93.4%, and car park revenue contributed 1.0% to Group revenue.
- Ferry Terminal Operations: Now reported separately, contributed 2.9% to revenue. The relocation to South Jetty is expected to improve performance in coming quarters.
- Logistics & Bunkering: Contributed 1.1% to revenue, continuing its support role for port operations.
- Investment Holding & Associate Contributions: The Group’s share of profit from DP World Sabah Sdn Bhd associate rose to RM3.0 million (Q1 2025: RM2.2 million), highlighting the importance of this partnership.
Financial Position
As at 31 March 2026, the Group maintains a strong balance sheet with total assets of RM1.43 billion and net assets of RM1.18 billion. Net current assets stood at RM266.7 million, reflecting a healthy liquidity position. Loans and borrowings remain manageable at RM21.7 million, with no defaults or breaches recorded.
Capital Commitments and Expansion
Port infrastructure investments continue, with major projects including jetty extension at Sapangar Bay Oil Terminal, expansion at Sapangar Bay Conventional Cargo Terminal, and new quay cranes for Tawau Port.
Strategic Expansion into Power Generation (Potential Price-Sensitive Development)
- 100MW Gas Peaking Plant in Kimanis: Through SCES and in partnership with NRG Consortium (Sabah), the Group has received a Letter of Notification from the Energy Commission of Sabah for this project. The project is expected to be executed via Suria Powergen 1 Sdn. Bhd., with SCES holding 70% and NRG 30%.
- Proposed Diversification: The Company proposes to diversify its principal activities into power generation, transmission, and distribution. This move, subject to shareholder approval at an EGM, represents a major strategic shift and could provide a stable, recurring income stream to diversify and strengthen the Group’s earnings base.
Outlook
Management is cautiously optimistic for the remainder of 2026, with port operations expected to remain resilient. The ferry terminal relocation is anticipated to yield operational improvements, and the proposed power project, if approved, could be a significant driver of long-term growth and share price performance.
Other Notable Items
- Dividends: No dividend declared for the period.
- Material Litigation: The Group is involved in an arbitration proceeding; outcome and financial impact are uncertain, and no provision has been made.
- Corporate Proposals: No other corporate proposals pending aside from the proposed power business diversification and related joint venture.
Potential Share Price Catalysts
- Approval and Execution of the Kimanis Power Project: Successful shareholder approval and execution of the power plant would diversify earnings and could materially impact valuation multiples.
- Improved Ferry Terminal Performance: The ramp-up at South Jetty could improve non-port revenue streams.
- Resolution of Contingent Liabilities: Positive or negative outcomes in the arbitration case could influence investor sentiment.
Disclaimer
This article is based on publicly available financial statements and is intended for informational purposes only. It does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The author and publisher accept no liability for any actions taken based on the information provided herein.
Suria Capital Holdings Berhad: Keputusan Suku Pertama 2026 & Perkembangan Korporat Utama
Sorotan Utama untuk Pelabur
- Prestasi Kewangan: Kumpulan merekodkan pendapatan operasi sebanyak RM42.3 juta bagi suku berakhir 31 Mac 2026, turun 4% berbanding tahun lalu. Keuntungan sebelum cukai jatuh 41% tahun ke tahun kepada RM9.1 juta akibat sumbangan lebih rendah daripada segmen pembangunan hartanah dan perbelanjaan luar biasa yang lebih tinggi.
- Prestasi Segmen: Operasi pelabuhan kekal sebagai penyumbang utama, menyumbang 87.8% daripada jumlah pendapatan dan 68.7% daripada keuntungan sebelum cukai. Pembangunan hartanah dan penyewaan mencatat kemerosotan ketara.
- Perbelanjaan Luar Biasa: Penulisan aset sebanyak RM1.52 juta akibat pemindahan operasi terminal feri menjejaskan keputusan suku tahun ini.
- Pemindahan Operasi Terminal Feri: Terminal feri telah dipindahkan ke South Jetty pada Mac 2026 dan dijangka meningkatkan kecekapan operasi serta peluang komersial baru.
- Diversifikasi Strategik ke Penjanaan Kuasa: Melalui anak syarikat SCHB Engineering Services, Suria Capital bersama NRG Consortium (Sabah) menerima kelulusan membangunkan Loji Janakuasa Gas Peaking 100MW di Kimanis, Sabah. Cadangan diversifikasi ini tertakluk kepada kelulusan pemegang saham di EGM akan datang dan boleh memberi impak besar kepada pendapatan dan prospek jangka panjang Kumpulan.
- Kedudukan Tunai Kukuh: Tunai dan setara tunai meningkat kepada RM85.3 juta, menunjukkan aliran tunai operasi yang baik.
- Dividen: Tiada dividen dibayar atau diisytiharkan bagi tempoh ini.
- Tanggungan Kontinjen: Kumpulan terlibat dalam prosiding timbang tara dan kesan kewangan masih belum pasti.
- Komitmen Modal: Kumpulan melabur dalam infrastruktur pelabuhan dan di peringkat awal projek janakuasa Kimanis, namun belum menandatangani sebarang perjanjian wajib.
Tinjauan dan Prospek
Pengurusan kekal berhati-hati namun optimis untuk baki tahun 2026, dengan operasi pelabuhan dijangka kekal kukuh. Relokasi terminal feri dijangka menambah baik prestasi, dan projek janakuasa yang dicadangkan boleh menjadi pemacu utama pertumbuhan masa depan sekiranya diluluskan.
Penafian
Artikel ini berdasarkan penyata kewangan awam dan hanya untuk tujuan maklumat. Ia bukan nasihat pelaburan. Pelabur dinasihatkan membuat penilaian sendiri dan mendapatkan nasihat profesional sebelum membuat sebarang keputusan pelaburan. Penulis dan penerbit tidak bertanggungjawab atas sebarang tindakan berdasarkan maklumat ini.
