KUALA LUMPUR (Nov 17): ACE Market-listed SFP Tech Holdings Bhd saw its third quarter net profit rise 19.69% to RM11.03 million, from RM9.22 million a year earlier, mainly due to higher revenue and lower administrative expenses.

Revenue for the quarter ended Sept 30, 2023 (3QFY2023) jumped 70.2% to RM37.46 million, from RM22 million in 3QFY2022, on the back of recurring orders for assembled mechanical systems products from existing customers, the group told Bursa Malaysia.

Net profit for the first nine months of FY2023 climbed 30.17% to RM31.76 million, from RM24.4 million in the previous corresponding period, as nine-month revenue surged 78.46% to RM108.51 million from RM60.8 million.

SFP Tech, which specialises in engineering supporting services and automated equipment solutions, said the group is continuing to expand its operations by incorporating new machineries, broadening its product range, and introducing value-added offerings and services to grow its customer base.

“Further, as part of the group’s business strategy, the group has also continuously capitalised on growth opportunities and oriented its direction towards the high value-add turnkey mechanical assembly segment and envisage to further grow this business segment with sporadic large project-based business opportunities, as shown in the first three quarters of 2023 segmental performance,” it said.

SFP Tech said it has reorganised its manufacturing plants to better streamline its business operations, with Plants 1 and 2 positioned to expand the group’s sheet metal fabrication business operations.

Plant 2 also houses the group's existing large format computer numerical control (CNC) machining operations. Plant 3, meanwhile, houses the group’s multi geometry CNC machining, mechanical assembly and automated equipment solutions business operations.

Shares of SFP Tech finished up two sen or 2.06% at 99 sen on Friday, giving the group a market capitalisation of RM2.36 billion.