Taghill Holdings Berhad (“Taghill” or the “Company”), formerly known as Siab Holdings Berhad, an established player in Malaysia’s construction industry, today announced its unaudited financial results for the financial quarter ended 31 March 2025.
The Group reported a revenue of RM185.67 million and gross profit (“GP”) of RM17.33 million for the quarter under review. However, due to impairments and cost overruns from ongoing projects under its subsidiary companies, namely Siab (M) Sdn Bhd and Siab Construction Sdn Bhd (“Siab”), the Group recorded a Loss Before Tax (“LBT”) of RM39.58 million and a Loss After Tax (“LAT”) of RM44.33 million.
The Group’s revenue and GP were primarily driven by the strong financial contribution from its wholly owned subsidiary, Taghill Projects Sdn Bhd. Taghill Projects alone contributed RM160.57 million in revenue, supported by various profitable construction and civil engineering projects. The division delivered a healthy gross profit margin of approximately 11.6% and registered a Profit After Tax (“PAT”) of RM4.60 million, underscoring the subsidiary’s operational strength and margin efficiency.
However, the positive results from Taghill Projects were significantly offset by operational losses from Siab. These losses were primarily due to an impairment on trade receivables amounting to RM14.86 million and an impairment on contract assets totalling RM12.20 million. Additionally, Siab’s ongoing projects continued to experience elevated construction material costs and higher-than-expected defect rectification works, which further weighed on the Group’s overall profitability.
On a quarter-on-quarter comparison, the Group’s revenue declined from RM235.76 million in the preceding quarter to RM185.67 million, mainly due to lower construction activities carried out. Despite the revenue dip, the Group’s gross profit improved by RM9.00 million to RM17.33 million, reflecting more efficient project execution and stronger cost control.
Mr. Wong Yih Ming, Group Managing Director of Taghill Holdings Berhad said, “The performance of Taghill Projects this quarter reaffirms the quality and resilience of our core construction business. While we are addressing the challenges tied to legacy projects under Siab, our focus remains on improving project delivery, enhancing operational efficiency, and resolving the issues faced by these ongoing projects. Despite recording losses during the period, we are confident that the consistent positive contributions from Taghill Projects will continue to anchor our recovery efforts and support the Group’s path back to sustainable profitability.”
Looking ahead, the Group remains cautiously optimistic. As at 31 March 2025, the Group’s order book stood at RM1.946 billion, providing strong visibility into future revenue streams. The Company has announced on 8 April 2025 its intention to diversify into property development through a Proposed Joint Venture and Proposed Diversification, aimed at broadening its earnings base while enhancing long-term value creation. On 25 April 2025, the Company has also announced the acceptance of Letter of Award (“LOA”) – a main building construction project awarded by Indo Aman Bina Sdn Bhd, at Bandar Seri Damansara, Selangor Darul Ehsan for a total contract sum of RM494,650,000.00.
Industry prospects remain positive, supported by continued demand for affordable housing under the Ekonomi MADANI framework and an encouraging outlook for the construction sector. However, the Group remains vigilant of rising input costs and macroeconomic headwinds.
