KUALA LUMPUR (Dec 14): ACE Market-bound Critical Holdings Bhd posted a net profit of RM6.21 million for its first quarter ended Sept 30, 2023 (1QFY2024) on revenue of RM49.68 million.

Earnings per share for the quarter stood at 1.67 sen, based on the company's bourse filing on Thursday. No comparative figures were available, as it was the first interim financial report announced by the company.

The quarterly net profit makes up nearly 64.75% of the company's total profit after tax (PAT) for FY2023, which amounted to RM9.59 million, according to the company's prospectus summary.

In a separate statement, Critical Holdings said its MEP (mechanical, electrical and process) engineering solutions segment continues to be the primary revenue driver, contributing RM47.1 million or around 94.8% of its total revenue.

Within this segment, plantrooms accounted for 75.78%, followed by data centres at 18.23%, and cleanrooms at 0.79%, with MEP maintenance and services contributing the remaining 5.2%.

The company reported a gross profit of RM9.42 million, representing a gross profit margin of 18.96% — higher than FY2020 to FY2023's 14.67% to 17.99%. It attributed the increase to timing differences in recognising revenue and subcontractor costs.

Critical Holdings’ non-independent executive director and chief executive officer Tan Si Lim said the company will continue to focus on its key strengths in MEP engineering solutions and MEP maintenance and services for critical facilities such as plantrooms, cleanrooms and data centres.

"We are relatively optimistic on our prospects moving forward due to several prevailing catalysts, which include, among others, macro-economic factors such as the rise in foreign and domestic investments, expansion of end-user sectors within the country such as semiconductor and electronic industries, telecommunications, data centres and solar power as well as relocation of E&E manufacturing centers within Southeast Asia," Lim said.

Critical Holdings is slated to be listed on the ACE Market on Dec 18, 2023. It aims to raise RM39.03 million from the IPO by issuing new shares at 35 sen per share.

Lim said it has earmarked 38.13% of the IPO proceeds for working capital, 23.06% for acquiring a new office, and the rest to expand its sales and technical team, and to fund its capital and listing expenses.

The company also intends to tap into growth opportunities in the central and southern regions of peninsular Malaysia, particularly in the hyperscale data centres segment.