OGX Group Berhad Q2 2025 Interim Financial Report: Key Highlights for Investors

Strong Financial Performance in Q2 2025

OGX Group Berhad has released its unaudited interim financial report for the second quarter ended 30 November 2025, providing investors with important insights into its financial health, operational performance, and upcoming corporate actions ahead of its listing on the ACE Market of Bursa Malaysia.

Key Financial Results

• Revenue: Achieved revenue of RM74.0 million for the quarter and RM147.6 million for the cumulative six-month period. The bulk of this revenue was driven by the provision of IT infrastructure solutions, contributing 75.47% of total revenue, with the remainder from product distribution and support services.
• Profitability:
  • Gross Profit (GP): RM15.5 million for the quarter; RM31.0 million cumulatively.
  • Profit Before Tax (PBT): RM8.7 million for the quarter; RM19.1 million cumulatively.
  • Profit After Tax (PAT): RM6.0 million for the quarter; RM13.1 million cumulatively.
  • Earnings Per Share (EPS): Basic and diluted EPS of 0.81 sen for the quarter, 1.76 sen for the six-month period, based on the post-IPO enlarged share base of 750 million shares.
• Net Assets: Net assets attributable to owners stood at RM0.07 per share following the IPO share base, up from RM0.05 at the last audited period.
• Cash Position: Cash and cash equivalents totalled RM23.0 million at the end of the period, providing solid liquidity for ongoing operations and expansion plans.

Operating and Financial Position

• Balance Sheet Strength: Total assets rose to RM149.3 million from RM114.2 million at the end of May 2025, reflecting increased inventories and trade receivables in line with higher business activity.
• Borrowings: Total borrowings increased to RM37.8 million (up from RM32.6 million), primarily for working capital and invoice financing. The Group continues to manage its debt effectively, with short-term borrowings (largely invoice financing) making up the majority.
• Dividend: A dividend of RM4.5 million was paid in the previous period, but no dividend was declared or paid in the current quarter.
• Tax Rate: The effective tax rate for the quarter was higher than the statutory rate (31.04% vs 24%), due to non-deductible expenses and unrecognised deferred tax assets.
• No Material Litigation or Contingent Liabilities: As of the report date, there are no ongoing material litigations, contingent assets, or contingent liabilities.

Major Corporate Developments

• Internal Reorganisation and Acquisition: On 31 December 2025, OGX Group completed the acquisition of OGX Networks Sdn Bhd through an internal reorganisation. The consideration was RM39.6 million, fully satisfied by issuing 599,999,000 new shares at RM0.066 each. This acquisition positions OGX Networks as a subsidiary, consolidating the Group’s core operations and setting the stage for its IPO.
• Initial Public Offering (IPO) and Listing:
  • The Company has launched its IPO, comprising a public issue of 150 million new shares and an offer for sale of 75 million shares at RM0.35 per share.
  • Shares are allocated to the Malaysian public, eligible directors/employees, institutional investors, and Bumiputera investors approved by MITI.
  • Upon listing on 12 March 2026, the enlarged share capital of 750 million shares will be quoted on the ACE Market.
  • The IPO is expected to raise RM52.5 million in gross proceeds.
• Utilisation of IPO Proceeds:
  • Business expansion: RM34.5 million (including RM30 million for a new HQ facility, RM2.5 million for expanding IT infrastructure brands, and RM2 million for geographical expansion, especially in East Malaysia).
  • Repayment of bank borrowings: RM4.5 million.
  • Working capital: RM8.5 million.
  • Listing expenses: RM5 million.

  The majority of business expansion funds are earmarked for a new headquarters and increasing the Group’s presence in East Malaysia, supporting long-term growth.

Segmental and Geographic Revenue Breakdown

• By Business Segment:
  • IT Infrastructure Solutions: RM55.9 million (Q2), RM112.9 million (6M)
  • Distribution of IT Infrastructure Products: RM11.7 million (Q2), RM23.2 million (6M)
  • Product Warranties and Support Services: RM6.5 million (Q2), RM11.5 million (6M)
• By Geography:
  • Peninsular Malaysia: RM58.0 million (Q2), RM127.7 million (6M)
  • East Malaysia: RM16.0 million (Q2), RM19.9 million (6M)

Strategic Outlook and Growth Prospects

The Group is optimistic about its future, citing:

• Rising digitalisation trends among Malaysian organisations.
• Increased demand for cybersecurity solutions and IT infrastructure.
• Supportive regulatory compliance and government digital transformation initiatives.

The management expects strategic use of IPO proceeds—especially for new facilities, expanded brand portfolio, and East Malaysia expansion—to strengthen its market position and drive sustainable long-term growth and improved financial performance.

Other Notable Items for Shareholders

• There were no extraordinary or exceptional items, no material changes in accounting estimates, no revaluation of assets, and no significant related party transactions or capital commitments in the quarter.
• No share issuance, cancellation, or repayment of securities occurred during the quarter.
• There were no profit forecasts or guarantees issued by the Group.

Potential Share Price Catalysts

• Completion of the OGX Networks acquisition and IPO listing are key price-sensitive events for shareholders.
• Strong revenue and profit growth, robust balance sheet, and strategic use of IPO proceeds for expansion could drive investor confidence and support share price appreciation post-listing.
• Any delays or variations in the execution of expansion plans, especially in high-growth East Malaysia, may impact future valuations and share price performance.

Disclaimer: This article is a summary of OGX Group Berhad’s unaudited interim financial report for the second quarter ended 30 November 2025. It is intended for informational purposes only and does not constitute investment advice. Investors should review the full report and consult financial professionals before making investment decisions. The author and publisher accept no liability for any losses arising from reliance on this summary.

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