KUALA LUMPUR (Nov 18): Power cable manufacturer Master Tec Group Bhd’s (KL:MTEC) third quarter net profit only grew marginally year-on-year, despite revenue jumping 34.4%, as its gross profit margin fell to 11.3% from 16.6%, its bourse filing on Monday showed.
The group made a net profit of RM5.97 million for its third quarter ended Sept 30, 2024 (3QFY2024), up 3% from RM5.78 million in 3QFY2023, while its quarterly revenue rose to RM87.63 million from RM65.22 million. The group's operating profit margin dropped to 9% from 14.1%.
During the quarter under review, it declared a second interim dividend of 0.18 sen per share, payable on Dec 16. It didn't make any payout for the same quarter last year.
For the nine months ended Sept 30 (9MFY2024), the company’s net profit was largely unchanged at RM19.66 million versus RM19.41 million a year ago, even as cumulative revenue rose 12% to RM227.62 million from RM203.25 million.
On prospects, Master Tec said it aims to further grow its position by venturing into the manufacturing of medium-voltage power cables and expanding export sales.
It also said its RM3.74 million share subscription of a 51% stake in Sediacom Sdn Bhd, which was completed on Oct 23, would provide the group the opportunity to expand into the power infrastructure utilities market.
Some new business opportunities it saw were drilling and underground cable laying, overhead lines installation, road safety management, back reaming pulling high-density polyethylene (HDPE) pipes, and providing freight transport by road, it said.
“With consistent growth in core segments and promising expansion into power infrastructure through Sediacom, we are well-equipped to strengthen our market presence. Our focus remains on delivering sustainable growth and enhancing value for our shareholders,” said chief executive director Tee Kok Hwa in a separate statement.
Shares in Master Tec closed two sen or 1.7% higher at RM1.22 on Monday, giving the group a market capitalisation of RM1.24 billion. Listed on Jan 29, the stock has more than tripled from its listing price of 39 sen.