DC Healthcare Holdings Berhad Delivers Turnaround in Q1 2026: Revenue Growth and Return to Profitability

Key Highlights from the Q1 2026 Interim Financial Report

• Revenue Growth: The Group recorded a substantial 19% increase in revenue, rising to RM21.36 million for the quarter ended 31 March 2026, compared to RM17.90 million in the same period last year. This growth was driven primarily by strong performance in the aesthetic services segment.
• Return to Profitability: DC Healthcare swung back to profit, posting a profit before tax of RM0.32 million, a significant turnaround from a loss before tax of RM0.84 million in Q1 2025. Net profit for the period stood at RM0.12 million, translating into an earnings per share (EPS) of 0.01 sen compared to a loss per share of 0.08 sen previously.
• Gross Profit Improvement: Gross profit advanced from RM9.12 million to RM10.18 million, reflecting better cost management and higher sales contributions from its main segment.
• Cost Management: The Group’s staff costs decreased by 13% to RM2.03 million (from RM2.32 million), contributing to improved profitability, despite slightly higher administrative expenses (RM7.44 million vs RM7.37 million).

Operational & Financial Details

• Segmental Performance:
  • Aesthetic services contributed RM18.68 million (87% of total revenue), up 26% year-on-year.
  • General medical services revenue declined to RM1.88 million (from RM2.33 million).
  • Skincare product sales increased to RM0.80 million (from RM0.72 million).
• Balance Sheet:
  • Total assets stood at RM110.92 million, with equity attributable to shareholders at RM45.06 million.
  • Net assets per share remained steady at RM0.05.
  • The Group maintained a healthy cash position with RM24.63 million in cash and bank balances at quarter-end.
• Bank Borrowings:
  • Total bank borrowings increased marginally to RM11.49 million (vs RM11.31 million at year-end 2025).
  • All borrowings are denominated in Ringgit Malaysia.
• Cash Flow:
  • Net cash from operating activities was RM1.25 million.
  • Net cash used in financing activities amounted to RM3.01 million, mainly due to lease repayments.
  • Positive investing cash flow of RM1.40 million, primarily due to additions of right-of-use assets.

Corporate & Strategic Developments

• New Subsidiary: On 30 January 2026, DC Healthcare incorporated a new subsidiary, DC Pinnacle Sdn Bhd (DCPN), with 65% ownership (DC Healthcare) and 35% (Marvest Elite Holding Sdn Bhd). The subsidiary, currently dormant, is intended for aesthetic and general medical services and skincare product sales. This signals the Group’s intention to expand its footprint, which may be of interest to investors monitoring growth strategies.
• Digitalisation & ERP Implementation: The Group is actively investing in digitalisation, including the integration of Artificial Intelligence-assisted skin analysis tools and an enterprise resource planning (ERP) system. These moves are aimed at enhancing service quality, operational efficiency, and decision-making capabilities – all potentially improving long-term value and margins.

Other Notable Points for Shareholders

• No Dividend Declared: The Board did not declare any dividend for the quarter.
• No Corporate Proposals or Material Litigation: There are no outstanding corporate proposals or litigation issues, removing potential overhangs on the share price.
• Taxation: Effective tax rate was higher than statutory at 63.47%, mainly due to the recognition of estimated tax instalments for the current year.
• Accounting Policy Updates: The Group will adopt several new and amended MFRSs from 2026 onwards, but none are expected to materially impact the accounts in the near-term.

Management’s Outlook

The management remains optimistic, focusing on strengthening market position in the medical aesthetic and wellness industry through:

• Continuous enhancement of core offerings and expansion of product range to respond to market trends.
• Digitalisation and technology upgrades to improve customer experience and operational efficiency.
• Cost management initiatives and resource optimisation across its clinic network and corporate functions.
• Sustained investment in system upgrades such as ERP to drive strategic integration and data-driven decision making.

These strategies are intended to drive sustainable growth and reinforce the Group’s industry leadership.

Potential Share Price Sensitivities

• Turnaround to Profitability: The return to profit after a loss period is a positive signal which could restore investor confidence and support share price recovery.
• Strong Growth in Aesthetic Segment: The continued expansion in the aesthetic segment underpins the Group’s revenue model, indicating resilience and potential for further growth.
• Investments in Technology and New Subsidiary: These moves underscore the Group’s growth ambitions and could catalyse future revenue streams.
• High Effective Tax Rate: The higher-than-normal effective tax rate may affect near-term net profit margins and is a factor for investors to monitor in subsequent quarters.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with professional advisers before making investment decisions.

Laporan Bahasa Malaysia

DC Healthcare Holdings Berhad Catat Pemulihan Untung Suku Pertama 2026: Pertumbuhan Hasil dan Inisiatif Strategik

Sorotan Utama Laporan Kewangan Suku Pertama 2026

• Peningkatan Hasil: Kumpulan mencatat peningkatan hasil sebanyak 19% kepada RM21.36 juta untuk suku berakhir 31 Mac 2026, berbanding RM17.90 juta tahun sebelumnya. Pertumbuhan ini dipacu terutamanya oleh prestasi kukuh segmen perkhidmatan estetik.
• Pemulihan Keuntungan: DC Healthcare kembali mencatat keuntungan sebelum cukai sebanyak RM0.32 juta, berbanding kerugian sebelum cukai RM0.84 juta pada suku yang sama tahun lalu. Keuntungan bersih ialah RM0.12 juta dengan EPS 0.01 sen (berbanding kerugian 0.08 sen sesaham).
• Peningkatan Untung Kasar: Untung kasar naik daripada RM9.12 juta kepada RM10.18 juta, melambangkan pengurusan kos yang lebih baik serta sumbangan jualan yang tinggi.
• Pengurusan Kos: Kos kakitangan turun 13% kepada RM2.03 juta, membantu keuntungan meskipun perbelanjaan pentadbiran sedikit meningkat.

Perincian Operasi & Kewangan

• Prestasi Segmen:
  • Perkhidmatan estetik menyumbang RM18.68 juta (87% dari jumlah hasil), naik 26% tahun ke tahun.
  • Perkhidmatan perubatan am menurun kepada RM1.88 juta.
  • Jualan produk penjagaan kulit meningkat kepada RM0.80 juta.
• Kedudukan Kewangan:
  • Aset keseluruhan RM110.92 juta, ekuiti pemegang saham RM45.06 juta.
  • Aset bersih sesaham kekal RM0.05.
  • Kedudukan tunai kukuh dengan baki RM24.63 juta.
• Pinjaman Bank:
  • Jumlah pinjaman bank RM11.49 juta, semuanya dalam Ringgit Malaysia.
• Aliran Tunai:
  • Tunai operasi bersih RM1.25 juta.
  • Tunai digunakan untuk aktiviti pembiayaan RM3.01 juta, terutama pembayaran pajakan.
  • Tunai pelaburan positif RM1.40 juta, terutamanya penambahan aset hak guna.

Perkembangan Korporat & Strategik

• Anak Syarikat Baharu: Pada 30 Januari 2026, DC Healthcare menubuhkan DC Pinnacle Sdn Bhd (DCPN) (65% dimiliki oleh DC Healthcare). Walaupun masih belum aktif, ia menunjukkan hasrat pengembangan kumpulan ke dalam perkhidmatan estetik dan produk penjagaan kulit.
• Inisiatif Digital & ERP: Kumpulan giat melaksanakan pendigitalan dan penggunaan teknologi seperti AI dan ERP untuk meningkatkan kualiti perkhidmatan serta kecekapan operasi.

Perkara Penting Untuk Pemegang Saham

• Tiada Dividen Diumumkan: Tiada dividen diisytiharkan bagi suku ini.
• Tiada Cadangan Korporat atau Litigasi Material: Tiada isu yang boleh menjejaskan harga saham pada masa ini.
• Kadar Cukai Efektif Tinggi: Kadar cukai 63.47% lebih tinggi dari biasa, memberi kesan kepada margin keuntungan bersih.
• Kemas Kini Polisi Perakaunan: Piawaian baharu akan diterima pakai, namun tiada kesan ketara dijangka dalam masa terdekat.

Pandangan Pengurusan

Pihak pengurusan kekal optimis dengan tumpuan kepada pengukuhan pasaran, inovasi perkhidmatan, digitalisasi, pengurusan kos, dan pelaksanaan sistem ERP untuk pertumbuhan mampan dan keunggulan operasi.

Faktor Sensitif Harga Saham

• Pemulihan Keuntungan: Kembali mencatat keuntungan selepas tempoh kerugian boleh meningkatkan keyakinan pelabur.
• Pertumbuhan Kukuh Segmen Estetik: Menunjukkan potensi pertumbuhan berterusan.
• Pelaburan Dalam Teknologi & Subsidiari Baharu: Berpotensi membuka sumber pendapatan baharu.
• Kadar Cukai Tinggi: Perlu dipantau dalam suku mendatang.

Penafian

Artikel ini adalah untuk tujuan maklumat sahaja dan tidak merupakan nasihat pelaburan atau cadangan untuk membeli atau menjual sebarang sekuriti. Pelabur perlu membuat penilaian sendiri dan mendapatkan nasihat profesional sebelum membuat sebarang keputusan pelaburan.

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