Careplus Group Berhad: Detailed Investor Update – Q3 FY2026 Results and Developments

Key Highlights from the Quarterly Financial Report (Q3 FY2026)

• Revenue Decline: Careplus Group Berhad recorded revenue of RM20.65 million for the quarter ended 31 March 2026, down 32.49% from RM30.58 million in the same quarter last year. Cumulatively, revenue for the nine months was RM76.56 million, a decrease of 4.36% year-on-year.
• Loss Reduction: The loss before taxation (LBT) improved significantly to RM1.88 million from RM5.94 million in the previous year’s corresponding quarter. For the nine-month period, LBT was RM6.06 million, a 75% improvement from RM24.22 million previously.
• Glove Division Under Pressure: The revenue drop was mainly due to lower sales in the glove manufacturing division, signaling ongoing challenges in the sector, including low average selling prices (ASP), high energy and labor costs, and low utilization rates.
• Depreciation Impact: The improvement in losses was attributed to lower depreciation charges following impairment recognized in the previous financial year.
• Cash Flow and Liquidity: Net cash used in investing activities was substantial at RM21.88 million, driven mainly by heavy capital expenditure (RM21.06 million in property, plant, and equipment) and acquisition of business operations. Cash and cash equivalents at period end stood at RM5.45 million, down from RM14.34 million at the start of the period.
• Private Placement: In April and May 2026, Careplus announced and completed the first tranche of a private placement of up to 77.24 million shares (10% of issued shares). 20 million shares were placed at RM0.0734 per share, raising RM1.47 million for the NEV (New Energy Vehicle) Manufacturing Hub. The second tranche (issue price RM0.076) is pending completion.
• NEV & Expansion: Construction of the CKD (Completely Knocked Down) plant in Chembong and expansion of the NEV distribution network is ongoing. Commercial vehicle assembly has started in Senawang, with passenger car assembly expected in 2026.
• Legal Proceedings: Two major lawsuits are ongoing:
  • Test Rite International Company Ltd v Careglove Global Sdn Bhd: Two suits involving alleged breach of supplier and deposit refund agreements, with a counterclaim by Careglove (CGG). The combined trial is scheduled for June 2027. Directors believe there will be no material impact on business, but note potential claims and legal costs.
  • Teo Yun Hock v Intro Synergy Sdn Bhd, NexV Manufacturing Sdn Bhd & Others: Alleged conspiracy over unpaid share purchase, with trial dates fixed for July and October 2026. No provision is made, as directors do not expect material impact on operations.
• Capital Commitments: RM15.51 million in authorized and contracted capital expenditure for construction of new buildings.
• Borrowings: Total secured borrowings as at 31 March 2026 were RM35.45 million, up from RM32.33 million a year earlier, reflecting increased term loans for expansion.
• Segmental Performance: The glove division contributed RM68.18 million to revenue (cumulative nine months), investment holding RM144k, new energy RM8.24 million.
• Related Party Transactions: Significant payments include RM421k consultancy/allowances to close family members, RM144k rental, and RM74k for outsourced labor to directors.
• Taxation: Group effective tax rate is lower than statutory due to capital allowances, reinvestment allowance, and unabsorbed losses.
• Loss Per Share: Basic and diluted loss per share for the quarter was (0.26) sen; for nine months, (0.68) sen. Net assets per share declined to 27.33 sen from 30.87 sen.

Price-Sensitive Matters & Shareholder Considerations

• Private Placement: The ongoing private placement will increase share capital and dilute existing shareholders, but is targeted for strategic investment in the NEV hub. Any change in utilization or completion status could affect share price.
• Legal Risks: While directors do not expect material impact, the lawsuits involve substantial claims and could affect cash flow or reputation if outcomes are adverse. The trial dates are distant (mid-2027), but investors should monitor developments.
• Cash Flow Pressures: Significant capital expenditures and declining cash balances raise questions about liquidity and funding. Future placements or borrowings could impact share value.
• Glove Sector Challenges: Ongoing weak performance in gloves may continue to weigh on valuation, unless NEV initiatives deliver revenue and profitability improvements.
• NEV Expansion: The transition to assembling passenger and commercial vehicles is a strategic pivot. Timely completion and market acceptance of NEV products could be a catalyst for share price recovery.
• Capital Commitments: RM15.51 million in pending capex commitments could increase leverage or require further equity funding.

Outlook

Careplus Group Berhad faces ongoing challenges in its core glove manufacturing business, but is actively diversifying into NEV assembly and distribution. The successful completion and ramp-up of the Chembong plant and NEV operations will be key to reversing losses and improving shareholder value. The outcome of legal proceedings and the ability to manage capital requirements without excessive dilution or debt will also be critical for investors.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult financial advisors before making investment decisions. The information is based on unaudited quarterly financial statements and may be subject to change.

Versi Bahasa Malaysia

Careplus Group Berhad: Kemaskini Pelabur – Laporan Kewangan Suku Ketiga FY2026 & Perkembangan Penting

Perkara Utama dari Laporan Kewangan Suku Ketiga (Q3 FY2026)

• Pendapatan Menurun: Careplus mencatatkan pendapatan RM20.65 juta untuk suku berakhir 31 Mac 2026, turun 32.49% berbanding RM30.58 juta tahun lalu. Kumulatif sembilan bulan ialah RM76.56 juta, turun 4.36% tahun ke tahun.
• Pengurangan Kerugian: Kerugian sebelum cukai (LBT) bertambah baik kepada RM1.88 juta dari RM5.94 juta tahun lalu. Kumulatif sembilan bulan, LBT ialah RM6.06 juta, penambahbaikan 75% dari RM24.22 juta.
• Bahagian Sarung Tangan Tertekan: Penurunan pendapatan didorong oleh jualan rendah dari bahagian pembuatan sarung tangan, menandakan cabaran berterusan termasuk ASP rendah, kos tenaga dan buruh tinggi serta kadar guna kapasiti rendah.
• Impak Susut Nilai: Penambahbaikan kerugian didorong oleh caj susut nilai lebih rendah ekoran pelupusan nilai tahun lepas.
• Aliran Tunai & Kecairan: Aliran tunai pelaburan negatif RM21.88 juta, didorong oleh capex besar (RM21.06 juta) dan pemerolehan operasi. Tunai akhir tempoh RM5.45 juta, turun dari RM14.34 juta.
• Penempatan Saham Swasta: Penempatan swasta hingga 77.24 juta saham diumum dan sebahagian dilaksanakan, 20 juta saham pada RM0.0734/saham, kutipan RM1.47 juta untuk NEV Manufacturing Hub. Tranche kedua RM0.076/saham sedang menunggu pelaksanaan.
• NEV & Pengembangan: Pembinaan kilang CKD di Chembong dan pengembangan rangkaian NEV sedang berjalan. Perakitan kenderaan komersial bermula di Senawang, perakitan kereta penumpang dijangka 2026.
• Tindakan Undang-Undang: Dua tuntutan utama berjalan:
  • Test Rite v Careglove Global: Dua kes melibatkan dakwaan pelanggaran perjanjian pembekal dan deposit, dengan counterclaim Careglove. Perbicaraan gabungan dijadual Jun 2027. Pengarah percaya tiada impak material, namun tuntutan dan kos undang-undang perlu dipantau.
  • Teo Yun Hock v Intro Synergy & NexV Manufacturing: Dakwaan konspirasi mengenai pembayaran pembelian saham, perbicaraan Julai dan Oktober 2026. Tiada peruntukan dibuat kerana tiada impak material dijangka.
• Komitmen Modal: RM15.51 juta komitmen capex untuk pembinaan bangunan baharu.
• Pinjaman: Jumlah pinjaman terjamin setakat 31 Mac 2026 ialah RM35.45 juta, meningkat dari RM32.33 juta setahun lalu.
• Prestasi Segmen: Bahagian sarung tangan menyumbang RM68.18 juta (kumulatif sembilan bulan), pelaburan RM144k, tenaga baharu RM8.24 juta.
• Transaksi Pihak Berkaitan: Pembayaran ketara termasuk RM421k konsultansi/elaun kepada ahli keluarga terdekat, RM144k sewa, RM74k buruh kepada pengarah.
• Cukai: Kadar cukai efektif lebih rendah dari kadar statutori kerana elaun modal, elaun pelaburan semula dan kerugian cukai dibawa ke hadapan.
• Kerugian Saham: Kerugian sesaham untuk suku ini ialah (0.26) sen; sembilan bulan, (0.68) sen. Aset bersih sesaham turun ke 27.33 sen dari 30.87 sen.

Perkara Sensitif Harga & Pertimbangan Pemegang Saham

• Penempatan Saham Swasta: Penempatan saham bakal meningkatkan modal saham dan mencairkan nilai pemegang saham, namun untuk pelaburan strategik NEV. Sebarang perubahan status pelaksanaan boleh mempengaruhi harga saham.
• Risiko Undang-Undang: Walaupun pengarah tidak menjangka impak material, tuntutan melibatkan jumlah besar dan boleh menjejaskan aliran tunai atau reputasi jika keputusan tidak memihak.
• Tekanan Aliran Tunai: Capex besar dan baki tunai menurun menimbulkan persoalan kecairan dan pembiayaan. Penempatan atau pinjaman tambahan boleh mempengaruhi nilai saham.
• Cabaran Sarung Tangan: Prestasi lemah berterusan boleh menekan penilaian kecuali inisiatif NEV berjaya meningkatkan pendapatan dan keuntungan.
• Pengembangan NEV: Peralihan ke perakitan kenderaan adalah strategi penting. Pelaksanaan tepat masa dan penerimaan pasaran boleh jadi pemangkin pemulihan harga saham.
• Komitmen Modal: RM15.51 juta komitmen capex boleh meningkatkan leverage atau perlukan pembiayaan ekuiti tambahan.

Prospek

Careplus menghadapi cabaran berterusan dalam perniagaan sarung tangan, namun sedang mempelbagaikan ke NEV. Kejayaan pembinaan kilang Chembong dan operasi NEV penting untuk membalikkan kerugian dan meningkatkan nilai pemegang saham. Keputusan tindakan undang-undang dan keupayaan mengurus keperluan modal tanpa pencairan atau hutang berlebihan juga kritikal untuk pelabur.

Penafian

Artikel ini untuk tujuan maklumat sahaja dan bukan nasihat pelaburan. Pelabur dinasihatkan membuat penilaian sendiri dan merujuk penasihat kewangan sebelum membuat keputusan pelaburan. Maklumat adalah berdasarkan penyata kewangan suku tahunan tidak diaudit dan boleh berubah.

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