Sim Leisure Group Delivers Record FY2025 Results and Outlines Strategic International Expansion

Key Highlights From the FY2025 Report

• Record Profit Before Tax (PBT): Achieved RM60.6 million for FY2025, a robust 24.4% increase year-on-year.
• Shareholder Returns: Profit attributable to shareholders soared by 78.2% to RM40.8 million. The Board proposes a final one-tier tax-exempt cash dividend of RM0.04 per ordinary share, subject to shareholder approval at the upcoming AGM.
• Financial Position: Net assets rose by 29.1% to RM150.5 million and cash and bank balances nearly doubled to RM88.9 million.
• Operational Strength: The Theme Park segment led growth with higher attendance and in-park spending, boosting revenue by 5.3% to RM82.6 million and PBT by 23.2% to RM21.6 million.
• Strategic Pivot & Expansion: The Group is shifting its focus to international expansion, targeting the high-growth leisure market in China, with plans to launch its first integrated ESCAPE and SIMall concept in Guangzhou (Huangpu District).
• Significant New Projects: Secured the SAR 112.6 million Al Nahda Entertainment Complex Exit 15 project in Riyadh, Saudi Arabia; exploring collaboration with theming fabricators to export expertise into China.

Detailed Financial and Operational Review

Group Performance

Sim Leisure Group reported its highest-ever profit before taxation (PBT) of RM60.6 million for the year ended 31 December 2025, marking a substantial RM11.9 million increase (+24.4%) from FY2024. This record performance was driven primarily by robust growth in the Theme Park segment, which saw PBT rise by 23.2% to RM21.6 million, underpinned by higher visitor numbers and increased in-park spending. Group revenues from the theme parks hit RM82.6 million, up 5.3% year-over-year.

Another key contributor to the improved results was higher other income, totaling RM46.7 million, largely arising from successful compensation settlements across commercial and project agreements, notably the early termination of the ESCAPE @KL Base project.

The Theme Attractions Construction segment, meanwhile, registered lower revenues and profits (RM55.5 million revenue, RM1.6 million PBT) due to the near completion of the Six Flags Qiddiya project. However, the pipeline remains strong, with the SAR112.6 million Al Nahda Entertainment Complex Exit 15 project in Riyadh recently secured and at an early construction stage.

Shareholder Value and Dividend Proposal

Profit after taxation climbed 19.9% to RM43.3 million, while profit attributable to shareholders surged by 78.2% to RM40.8 million, reflecting effective cost controls, operational improvements, and non-recurring income. The Company is proposing a final one-tier tax-exempt cash dividend of RM0.04 per share, pending shareholder approval at the next AGM. This payout demonstrates the Group’s strong commitment to rewarding shareholders amid record performance.

Net assets attributable to shareholders rose significantly by 29.1% to RM150.5 million, while cash and bank balances nearly doubled to RM88.9 million, providing a strong foundation for future investments and growth initiatives.

Strategic Expansion and Growth Prospects

The Group is actively investing in its existing parks and rolling out ongoing efficiency and customer experience enhancement initiatives. Management remains confident in further improving the performance of its core portfolio.

A significant and potentially price-sensitive development is the Group’s pivot to international expansion, particularly targeting the People’s Republic of China (PRC). As part of this strategy, Sim Leisure is engaging with landlords and government agencies in Guangzhou’s Huangpu District regarding a potential lease for a 250-acre site to develop its flagship overseas integrated ESCAPE and SIMall concept parks, to be branded as “ESCAPE Huangpu.” If formalized, this project would represent the Group’s first large-scale leisure destination in China, targeted to open in 2027. Such a major move into China could open up substantial new revenue streams and enhance valuation multiples for the Group.

The Group is also collaborating with theming fabricators to export its attraction construction expertise into the Chinese market, supporting the expansion of both the Theme Park and Theming Construction segments.

In the Gulf Cooperation Council region, management continues to engage with clients for new attraction projects, enhancements, and maintenance, maintaining the Group’s position as a leading theming contractor.

Park Portfolio and New Concepts

The Group currently operates four ESCAPE parks and two KidZania edutainment parks across Singapore and Malaysia. Plans are in place to internationalize the ESCAPE brand and launch the SIMall Entertainment Hub, which will feature the GoSmart and Carnival attractions. The Entertainment Hub will offer a range of experiences, including VR rides, skill games, learning experiences, and immersive adventure zones.

Notably, efforts to launch the SIMall concept in Malaysia have been slow due to mall owners’ preference for traditional retail and F&B tenants. The focus has thus shifted to China, where consumer appetite for differentiated leisure concepts is expected to be stronger.

Investor Takeaways and Price-Sensitive Insights

• FY2025’s record-breaking results and the proposed dividend payout could act as positive catalysts for the share price.
• The Group’s expansion strategy into China, with the proposed ESCAPE Huangpu integrated leisure destination, represents a major growth opportunity.
• Securing large-scale projects in Saudi Arabia and exploring further international theming contracts strengthen the Group’s order book and long-term earnings visibility.
• Management’s strong cost control, healthy balance sheet, and cash position provide resilience and flexibility to pursue new ventures and reward shareholders.

Conclusion

Sim Leisure Group’s FY2025 performance signals robust operational momentum and a clear strategic pivot towards international expansion. The proposed dividend, strong cash generation, and entry into the Chinese market are all developments that could potentially move the share price and warrant close attention from investors.

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