KUALA LUMPUR (Feb 24): Wood-based furniture manufacturer and property developer TAFI Industries Bhd posted its second straight quarterly profit in the fourth quarter ended Dec 31, 2021 (4QFY21), posting a net profit of RM3.25 million — which was a 68.9% jump from RM1.92 million recorded in 3QFY21 — due to higher local project sales of furniture and income derived from construction contracts.

On a year-on-year basis, it returned to the black in the current quarter under review compared with a net loss of RM5.31 million in 4QFY20.

This resulted in an earnings per share of 2.57 sen for 4QFY21 compared with a loss per share of 6.65 sen for 4QFY20.

Revenue for the quarter more than doubled to RM18.65 million from RM8.85 million in 4QFY20, due to the increase in local projects sales of furniture and income from construction contracts.

The positive quarterly performance helped the group stage a turnaround to post a net profit of RM5.48 million for the full year FY21 compared with a net loss of RM9.45 million in the previous year, while revenue grew 48.16% to RM43.54 million from RM29.39 million in FY20.

In a statement on Thursday (Feb 24), TAFI Industries group chief executive officer Datuk Seri Bryan Wong said the group will continue to work towards increasing revenue and profit for its furniture business by continuing to tender for more local government and non-government contracts and also via the strategic partnership with Signature Group and OMG Free Reno Sdn Bhd.

"We have until to-date made RM2.3 million in sales of furniture, fittings and related products and accessories to OMG. The potential growth is encouraging and we are confident that the collaboration will further enhance our local market’s share of supply of furniture via OMG’s ground breaking subscriber-based renovation platform,” he said.

Wong also said TAFI Industries has been focusing on its maiden property development at Habu, Pahang, with an estimated gross development value (GDV) of RM390 million, which is anticipated to commence this year.

“We will continue working towards expanding the group’s property development business by securing more joint ventures for property development projects to add to our existing six joint venture property development projects with a total estimated GDV of about RM1.01 billion.”

He added that the group is currently working towards tendering and securing more construction contracts from both the private and government sectors to further grow its revenue stream from construction contracts by leveraging on its wholly-owned unit TAFI Home & Office Sdn Bhd’s G7 licence issued by the Construction Industry Development Board, which allows it to tender for construction projects of unlimited value.

At 4.15pm, TAFI Industries’ shares were down five sen or 7.14% at 65 sen, bringing it a market capitalisation of RM244.76 million.