KUALA LUMPUR (Aug 5): Educational materials publisher Sasbadi Holdings Bhd (KL:SASBADI) has secured two contracts from the Ministry of Education to supply reprinted textbooks to schools, worth an estimated RM11.71 million.

The group said the first contract, awarded to its wholly-owned subsidiary Sasbadi Sdn Bhd (SSB), has an estimated contract value of RM6.89 million, while the second contract, awarded to its indirectly-owned subsidiary The Malaya Press Sdn Bhd (TMP), is worth RM4.82 million.  

"SSB and TMP are expected to deliver the first tranche of the contracts, worth approximately RM5.85 million in total to the schools throughout Malaysia in the first quarter of the financial year ending August 31, 2025 (FY2025)," Sasbadi said in a bourse filing on Monday.

It said the contracts are expected to contribute positively to the group's earnings and net assets for the financial year ending Aug 31, 2025 (FY2025).

For the first nine months of FY2024, Sasbadi's net profit dropped 46.3% to RM6.26 million from RM11.66 million in the previous year's corresponding period, mainly due to lower revenue and higher administrative expenses.

Revenue for the period fell 16.8% to RM66.24 million from RM79.57 million, mainly due to a decrease in revenue from its print publishing division, caused by an overall slower retail sales as well as the absence of contracts from the education ministry.

Sasbadi's shares closed 1.5 sen or 9.68% lower at 14 sen on Monday, giving it a market capitalisation of RM61.06 million. Year to date, the counter has declined by 17.7%.