KUALA LUMPUR (Nov 15): Contract manufacturer Ge-Shen Corporation Bhd (KL:GESHEN) said on Friday it remains confident of sustaining growth and profitability after its third-quarter net profit rose 46% from a year earlier.

Net profit for the three months ended Sept 30, 2024 (3QFY2024) was RM3.13 million driven by contributions from both existing manufacturing plants as well as from a newly acquired subsidiary in Kedah, Ge-Shen said in an exchange filing. Revenue grew by 3.5% year-on-year to RM67.85 million.

“We remain confident that our diverse product range will sustain our growth and profitability,” Ge-Shen chief executive Adrian Foong said. The company is on track to achieve better results this year compared to FY2023, he said.

The company did not declare any dividend for the quarter.

For the first nine months of the year, Ge-Shen reported its net profit has more than quadrupled to RM10.69 million thanks largely to a one-off gain from the sale of a subsidiary in the first quarter, while revenue climbed 18% to RM216.84 million.

A recovery US dollar “will help us recover slightly in the coming quarter” though the company — which mainly exports to the US and Europe — will closely monitor any tariffs imposed by the incoming US government that could impact material costs and supply chains, he said.

“We have taken measures to improve our supply chain and focus on higher margin areas” such as medical devices and electronic manufacturing services, Foong said.

Ge-Shen said it is “aggressively” expanding its manufacturing footprint across its subsidiaries in Malaysia and Vietnam to boost capacity and meet the rising demand in the medical devices sector.

In Penang, Ge-Shen is adding more than 32,000 square feet of controlled-room facilities to accommodate current and future medical customers.

In Vietnam, the company said it is expanding its plant to cater for expected demand surge in 2025 from both existing and new customers. “This expansion will help the company take on larger projects and increase its share in the medical device markets,” Ge-Shen noted.