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Sunzen Biotech Berhad: Q1 FY25 Financial Insights and Technical Outlook
Financial Performance Overview
Sunzen Biotech Berhad posted a stable financial performance for Q1 FY25, achieving a revenue of RM22.96 million, an 11.42% increase compared to the preceding quarter. Key contributors were:
• Human Health Segment: RM17.65 million in revenue, driven by robust export sales of edible bird’s nests to China, constituting 79.32% of segment revenue.
• Loan Financing Business: RM3.27 million in revenue with a notable pre-tax profit of RM2.95 million, highlighting steady growth in SME-focused financing solutions.
• Animal Health Segment: Currently in cessation, this segment recorded RM2.04 million in revenue but faced a pre-tax loss of RM1.23 million.
Despite challenges in the human health segment, including higher employee benefit expenses and unrealized foreign exchange losses, the group achieved a pre-tax profit of RM0.86 million, a slight 2.26% increase from the previous quarter.
Strategic Outlook
Sunzen remains optimistic about future growth:
• Human Health Segment: Anticipates higher sales during traditional peak seasons.
• Loan Financing Business: Steady demand from SMEs supports a positive outlook.
• Ophthalmic Expansion: The acquisition of a 70% stake in Eye Nation Medical Sdn. Bhd. is expected to diversify revenue streams and enhance profitability.
Technical Analysis
The share price of Sunzen Biotech is forming a bullish descending triangle on the daily chart. This pattern is often a precursor to an upward breakout, signaling potential growth if the resistance level near RM0.32 is surpassed with strong volume. Key levels to watch:
• Support: RM0.30
• Resistance: RM0.32 (triangle upper trendline)
A breakout above RM0.32 could see the stock retesting previous highs around RM0.36, supported by improving fundamentals and investor sentiment.
Conclusion
Sunzen Biotech is at an inflection point both fundamentally and technically. The combination of steady operational improvements and a promising technical setup makes it a stock to watch for potential upside momentum, particularly if the bullish triangle confirms its breakout.
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