KUALA LUMPUR (Nov 23): Central Global Bhd returned to the black in its third quarter ended Sept 30, 2022 (3QFY2022), posting a net profit of RM3.02 million compared with a net loss of RM2.38 million a year earlier, on stronger revenue contributions from both its manufacturing and construction segments.

This marks its third straight quarterly profit.

As a result, the manufacturing and construction outfit posted earnings per share of 2.41 sen for 3QFY2022, compared with a loss per share of 2.62 sen for 3QFY2021, its Bursa Malaysia filing on Wednesday (Nov 23) showed.

Quarterly revenue climbed five times or 429.16% higher to RM59.46 million from RM11.24 million in 3QFY2021.

Central Global's revenue from the manufacturing segment rose to RM14.61 million for the quarter under review from RM9.77 million a year earlier after the group's manufacturing operations recovered to normalcy.

Additionally, revenue from the group's construction segment rose to RM44.85 million in 3QFY2022 from RM1.46 million in 3QFY2021, on increased revenue from the work progress of Lahad Datu Phase 1 Water Supply System Project and the accelerated work progress on Montage Project.

The strong quarterly results helped the group post a net profit of RM6.27 million for the cumulative nine months ended Sept 30, 2022 (9MFY2022) compared with a net loss of RM3.93 million, as revenue doubled to RM145.96 million from RM66.94 million in 9MFY2021.

In a separate statement, Central Global group managing director Chew Hian Tat said the group remains optimistic that the country is charting towards a healthy recovery despite a tough operating environment for the construction industry particularly with the government's support through various initiatives such as initiating public infrastructure projects and providing policy support.

He noted that the group's business activities have started to pick up as reflected in its past two quarters' financial results.

"Our construction unbilled order book stands at RM407.1 million, and we expect a healthy replenishment of construction projects to keep us busy in the upcoming quarters well into the next financial year.

"On the other hand, despite the erosion of our manufacturing segment's profit margin due to some headwinds in the form of ever-intense competition for the export market, the rise of raw material costs, and the strengthening of the US dollar against the ringgit, we are confident of maintaining our profitability for the rest of the financial year," he said.

Looking ahead, Chew said Central Global aims to continue leveraging on the group's strong track record and position as the biggest masking tape manufacturer in Malaysia especially with its new masking tape coater production line, which is expected to be ready by year end.

He added that the commissioning of the line will not only result in a greater production volume but will also lower wastage and increase cost efficiency.

Central Global shares closed unchanged at 89.5 sen on Wednesday, bringing the group a market capitalisation of RM120.4 million.