KUALA LUMPUR (Jan 3): Industrial services firm Swift Energy Technology Bhd (KL:SET), which is slated to be listed on the ACE Market next Wednesday, made a net profit of RM5.18 million for the fourth quarter ended Sept 30, 2024 (4QFY2024), on the back of RM29.3 million in revenue.
Earnings per share stood at 0.69 sen. No dividend was declared during the quarter under review. This is the first interim financial report announced by Swift Energy, and no comparative figures are available as no interim financial report was prepared previously, it said in a bourse filing.
The group's revenue for 4QFY2024 was mainly from its manufacturing segment, which contributed RM22.01 million or 75.11% of total revenue.
The Malaysian market remains the largest market, contributing RM10.5 million to the group's revenue, or about 35.84% of the latest quarter's total revenue.
The company has offices in Thailand, Singapore, and China, serving about 550 customers across 29 geographical markets, covering Asia Pacific, the Middle East, Africa, and Europe.
Swift Energy is mainly involved in industrial automation and power systems, specialising in process control, solar photovoltaics, power distribution, and other systems for industries such as oil and gas, grain products, edible oils, and food manufacturing industries.
The group also supplies power and industrial electrical products, and provides technical services for process control and power distribution systems.
Swift Energy said the industrial automation and renewable energy sectors are poised for significant growth globally, driven by increasing demand for efficiency, sustainability, and innovation across industries. "This trend is particularly strong in industries like oil and gas, food manufacturing, and utilities, where operational excellence and resource optimisation are critical," it said.
As industries continue to navigate challenges such as energy security and environmental regulations, the demand for cutting-edge automation solutions and sustainable energy systems is expected to rise sharply, it added.
The group plans to raise RM84.07 million from its initial public offering, at 28 sen a share. The sum comprises RM70.06 million from the public issue of 250.2 million new shares, and RM14.01 million from an offer for sale of 50.04 million existing shares.
Proceeds raised from the offer for sale will go entirely to the selling shareholder Blueprint Capital Sdn Bhd, mainly controlled by Swift Energy chief executive Tan Bin Chee and corporate affairs director Suzana Abu Bakar.
As for proceeds raised from the new share issuance, those have been earmarked to expand the group's fabrication facility, storage, and office space.
It also plans to establish a new research and development centre in Shah Alam, and to expand into Indonesia by setting up a wholly owned subsidiary and an office in Jakarta. The rest of the funds will be used to repay borrowings, for working capital and for listing expenses.
Swift Energy will have a market capitalisation of about RM280 million upon listing — based on its enlarged share base of about one billion shares — valuing it about 24 times its net profit of RM11.95 million for FY2023.