Sasbadi Holdings Berhad

PETALING JAYA: Sasbadi Holdings Bhd has accepted two letters of acceptance from the Education Ministry (MoE) totalling RM11.7mil to supply reprinted textbooks.

$SASBADI / 5252 (SASBADI HOLDINGS BERHAD)

PETALING JAYA: Sasbadi Holdings Bhd has accepted two letters of acceptance from the Education Ministry (MoE) totalling RM11.7mil to supply reprinted textbooks.

Change in Boardroom - DATO' SALLEH BIN MOHD HUSEIN

Change in Boardroom - DATUK DR AMIN BIN SENIN

$SASBADI / 5252 (SASBADI HOLDINGS BERHAD): The Highest Profit Ever 📚

Q2 consistently marks the peak of revenue and profit for $SASBADI / 5252 (SASBADI HOLDINGS BERHAD) throughout the fiscal year. This trend is attributed to the financial year's closure at the end of February, preceding the school opening in March, fostering heightened book sales. However, this fiscal year witnessed unprecedented achievements in both revenue and profit. Key updates are as follows:

1. Revenue soared to RM35.02 million, marking a substantial 10.55% year-on-year increase.
2. Print publishing remains the primary revenue driver, constituting approximately 93% of total revenue, albeit with a modest 6% increase compared to the previous year.
3. Digital solutions and ALP & STEM segments contribute 2% and 5% respectively. Notably, the ALP & STEM segment experienced a remarkable 531% surge compared to the previous year.
4. EBIT surged to RM10.05 million, an impressive 18.42% year-on-year increase.
5. Net profit reached RM7.01 million, reflecting a substantial 22.1% year-on-year increase.
6. The net profit margin expanded to 20.02%, surpassing the previous year's 18.13%.
7. The balance sheet reveals a cash position of RM11.74 million, with asset increases primarily attributed to higher account receivables. This increase is customary in this line of business, often accompanied by an anticipated decrease in the subsequent quarter.
8. Long-term borrowings totaled RM1.41 million, while short-term borrowings surged by 167.5% to RM19.85 million, exceeding the company's cash reserves. This warrants attention.
9. The company experienced a negative operating cash flow of RM8.93 million, attributable to the rise in account receivables, surpassing last year's figure.
10. A dividend of RM0.005 per share has been declared.
11. Management highlights this quarter as the second-highest quarterly net profit since IPO, attributing the surge to robust sales of academic publications for the 2024 academic year and increased demand for LEGO® Education STEM products, aligning with governmental efforts to promote STEM education among Malaysian students.
12. To sustain its leadership in the Malaysian education sector, the company pledges to intensify digitalization efforts, focus on STEM & ALP segments, ramp up marketing endeavors for LEGO® Education STEM products, and pursue mergers and acquisitions for inorganic growth.
13. While the emphasis on digitalization and STEM products appears promising, the company remains subject to seasonal fluctuations, with at least one quarter experiencing losses, occasionally extending to two quarters.

SASBADI - Notice of Book Closure

Sasbadi Holdings Bhd reported its highest-ever quarterly revenue of RM35.02mil for the second quarter ended Feb 29, 2024 (2Q24), due to the robust sales of its academic publications for the 2024 academic year.

PETALING JAYA: Sasbadi Holdings Bhd reported its highest-ever quarterly revenue of RM35.02mil for the second quarter ended Feb 29, 2024 (2Q24), due to the robust sales of its academic publications for the 2024 academic year.

Quarterly rpt on consolidated results for the financial period ended 29/02/2024

Interim Dividend

$SASBADI / 5252 (SASBADI HOLDINGS BERHAD) – Ready for Back-to-School

🌐OVERVIEW
Sasbadi is a provider of diverse education solutions primarily operating in Malaysia with main operations in (1) Print Publishing, (2) Digital Solutions and Network Marketing, and (3) Applied Learning Programs (ALP) and STEM Education.

🔨OPERATING SEGMENTS
1. Print Publishing
(a) Academic prints
- Publications of workbooks, mock exam exercises, textbooks for MOE, etc.
- Distributed through physical bookstores (Popular), in schools, online platforms (Shopee/Lazada).
- Cyclicality: Primary and secondary school season (start of new academic calender), exam exams.
- Earn government tenders.
(b) Non-academic prints
- Comic books, novels, dictionaries, etc.
- Cyclicality: Marketing and promotional efforts, reading trend.

2. Digital Solutions and Network Marketing
(a)i-Learn Ace platform
- Flagship digital education solution (digitalised and atomised) for students preparing for exams.
- Revenue contribution from level of subscriptions.
- Partnership with BOOKR Kids.
(b)Digital teaching aid
- Targeting teachers.
- Revenue contribution from obtaining contracts from the government.

3. ALP and STEM Education
- Working with LEGO Education to promote hands-on learning through robotics and programming.
- Revenue contribution from annual robotics competitions, and obtaining contracts for robotic sets from schools.


💵 FINANCIALS {refer to attachments]:
*FYE 31 August
1. Financial performance
- A very huge jump in revenue and profits in 2023, especially in their PAT.
- FY23 in net cash position = RM2.6M
- Dividend yield = 4.5% (payout ratio of 32%)

2. Revenue (by Segments)
- Revenue from a customer = RM11.43M (2022: RM9.98M)
o contributed to more than 10% of the Group’s revenue.
- Print Publishing revenue = RM87.55M (91.07% of total revenue)
o Print publishing segment has always been contributing the most.


🔮FUTURE STRATEGIES:
1. Print publication
- Extend their lead in this segment through continued pursuit of product innovation.

2. M&A activities
- Increase their Intellectual Property (IP) portfolio.
- To launch new business segments with significant market share, spurring inorganic growth in short span of time.

3. Early childhood education (ECE) segment
- Partnership with BOOKR Kids, proposed acquisition of IPs from ICMSB.
- Develop ECE classroom solutions that provide standardisation across kindergartens (what with the market now being very fragmented).

4. Digitalisation of education sector
- Clinched two contracts from MOE:
o (1) Supplying and delivering digital solutions for school session usage (RM0.487 mil).
o (2) Service of testing the English language proficiency level of English teachers (RM0.285 mil).
- Capitalise on similar opportunities in tandem with MOE’s launch of the Digital Policy (DEP) on 28 Nov 2023.


🏫 INDUSTRY OVERVIEW
1. Population
- According to DOSM, the population of Malaysia is expected to increase from 28.16 mil (2010) to 41.5 (2040).
- However, a decrease in the younger (0-14 years) and working (15-64) age group is expected from 2010 to 2040.

2. Gross domestic product (GDP) per capita
- The gross domestic product per capita in Malaysia is forecast to continuously increase between 2023 and 2028 by in total $4,222.60 (+32.4 percent). After the 8th year, the GDP per capita is estimated to reach $17,256.63.
- This may drive up the demand for education products and solutions.

3. Government commitments to education sector
- 19% of national budget 2024 RM393.8bil, is allocated for the education sector, with RM58.7bil allocated for the Education Ministry and RM16.3bil for the Higher Education Ministry for RM75bil.
o RM1.9bil will be used to upgrade and maintain schools.
o RM930mil will be used to upgrade dilapidated buildings and infrastructure in 450 schools.
o RM1bil is for the maintenance of all types of schools.
- This may drive up the school’s enrolment rate, especially in rural areas.

4. Digitalisation of education
- While the current policy and Budget 2024 have made allocations for gadgets and the upgrading of Wi-Fi in schools, Malaysia is still hesitant to move into online learning due to hardware and internet availability and allowance of devices in school.

5. Paper raw materials (Management of costs)
- Purchase raw paper materials in bulk in advance, allowing them to preserve margin better through bulk discounts and locking in raw material costs at cheaper prices.
- According to reports, the performance of the Malaysian paper industry has remained stable in recent years, thanks in part to the establishment of overseas operations in Malaysia by Chinese pulp and paper companies. Leading producers in this sector include GS Paper & Packaging, Muda Paper Mills, and Pascorp Paper Industries.


📝 OTHER NOTES:
1. Termination of proposed acquisition of ICMSB’s intellectual property (publisher operating under Oyez!Books (16 Jan 2024).
- CMSB is obligated to refund the deposit of RM100,000.
- The termination is not anticipated to have a material effect on Sasbadi’s earnings and net assets for FYE2024, but will likely affect their ECE segment.

2. Outstanding order book = RM4.7 billion, supporting future growth.
- Sasbadi has consistently been the market leader in the education print industry in Malaysia and it does not seem to be changing anytime soon.

3. Current market cap = RM67.6 million

4. Academic calendar
-From 2022-2025, the start of the academic calendar will be in March.
-But the MOE has announced that it will revert back to January in 2026.

5. Growth in financials
- The increase in financials could most likely be due to the normalisation in school learning after the pandemic.

6. Brief update on 1Q24 (ended 30 Nov 2023)
- Revenue dropped by 17.5% YoY to RM15.3M due to lack of government contract contributions (textbooks and CEFR digital solutions), and lower-than-expected sales contribution from its Shopee partnership.
- However, 1Q24 tends to be seasonally weaker and they expect for sales to improve in 2Q and 3Q before the start of school terms, which will improve it’s print publishing segment.



Sources:
https://cutt.ly/Zw8sFbIy (Inter-Pacifiic)
https://cutt.ly/nw8sFbVx
https://cutt.ly/cw8sFna1
https://cutt.ly/Fw8sFnKj
https://cutt.ly/Cw8sFmes.
https://cutt.ly/uw8sFWE6
https://cutt.ly/9w8sFW45

Additional Listing Announcement /Subdivision of Shares

Additional Listing Announcement /Subdivision of Shares

Additional Listing Announcement /Subdivision of Shares

Additional Listing Announcement /Subdivision of Shares

After a soft start in the first quarter of financial year 2024 (1Q24), Sasbadi Holdings Bhd is poised to see a pick up in sales in the coming quarters with the start of the new school term.

General Meetings: Outcome of Meeting

Quarterly rpt on consolidated results for the financial period ended 30/11/2023

Additional Listing Announcement /Subdivision of Shares

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSSASBADI HOLDINGS BERHAD - PROPOSED ACQUISITION BY MEDIA DISTRIBUTION SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF SASBADI HOLDINGS BERHAD, OF INTELLECTUAL PROPERTIES OF INTEGRA CREATIVE MEDIA SDN BHD ("PROPOSED ACQUISITION")

$SASBADI / 5252 (SASBADI HOLDINGS BERHAD) - Business turnaround

Record-high revenue in FY23, driven by print publishing segment. Net profit jumped 10x in FY23. GPM remains below 2019 level but net margins doubled due to lower overheads.

Healthy balance sheet, external borrowings reduced to a minimal level (net cash). Business is generating cash. Norm for the business to have high inventory level.

The worst may be over. Optimistic for the print publishing segment to grow further before normalizing, growth in digital and early childhood segment.

Last ESOS exercise price was RM0.10 and RM0.12, respectively

@portoftheyear

$SASBADI / 5252 (SASBADI HOLDINGS BERHAD) 40%
$TMCLIFE / 0101 (TMC LIFE SCIENCES BERHAD) 20%
$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) 40%

$SASBADI / 5252 (SASBADI HOLDINGS BERHAD)

Interpac initiation report 3 Jan 2024

Statement to Shareholders in relation to the Proposed Renewal of Share Buy-Back Authority

Annual Report & CG Report - 2023

General Meetings: Notice of Meeting

OTHERSSASBADI HOLDINGS BERHAD ("Sasbadi Holdings" or "the Company")
- PROPOSED RENEWAL OF SHARE BUY-BACK AUTHORITY

$SASBADI / 5252 (SASBADI HOLDINGS BERHAD)'s Remarkable Milestone: A Glimpse into the Record-Breaking Financial Year 2023

1. Sasbadi Profile
- Sasbadi focuses on educational print publishing for primary and secondary education.
- It operates in segments: Print Publishing, Digital/Online Solutions, Direct Selling, Applied Learning Products, and STEM Education Services.
- Majority revenue is generated through the Print Publishing segment.

2. Q4FY2023 Performance
- Revenue increased by 0.48% to RM16.79m due to digital solutions and network marketing division's contributions.
- Losses widened in operating activities and before tax due to increased fixed costs and reduced provision of inventories write-down.

3. Revenue Distribution in Q4FY2023
- Print publishing contributed 88.55% of the revenue, while Digital -Solutions & Network Marketing and ALP & STEM Education segments followed.

4. FY2023 vs FY2022 Performance
- FY2023 revenue improved by 39.58% due to strong sales and secured contracts, especially in the Print Publishing Division.
- Huge increases in operating activities profit and profit before tax due to higher revenue and digital solutions' contributions.

5. Financial Position
- Total assets increased by 2.75%, with decreased liabilities and borrowings, maintaining a net cash position.
- Cash position improved by 12.16% to RM11.64m.

6. Cash Flow
- Operating cash flow was RM8.7m, leading to a net cash flow of RM7m after CAPEX deductions.

7. Future Strategies and Outlook
- M&As planned for market expansion and diversification.
- Focus on early childhood education (ECE) and partnerships for strategic growth.
- Diversification plans while maintaining quality standards and ongoing risk management strategies.

8. Valuation
- P/E at 7.88x, EPS at 2.35sen, ROE at 6.71%, and a dividend yield of 4.05%.
- The company distributed dividends of 0.75sen per share in FY2023.

9. Drawbacks and Risks
- Past inconsistent profits, facing losses in previous years, impacting optimism about the company's future.
- Susceptibility to seasonal patterns, political risks, and declining free cash flow.

PETALING JAYA: Sasbadi Holdings Bhd is looking at merger and acquisitions (M&As) as it seeks to accelerate growth and to enter new business segments.