KUALA LUMPUR (Feb 24): Power, control and instrumentation cable manufacturer Master Tec Group Bhd (KL:MTEC) posted a 79.4% surge in net profit for the fourth quarter ended Dec 31, 2024 (4QFY2024), on higher revenue and tax incentives in relation to the capital expenditure for the expansion of plants and machineries at its subsidiary Master Tec Wire & Cable Sdn Bhd.

Net profit for 4QFY2024 rose to RM7.35 million from RM4.1 million a year earlier. The group saw a higher earnings per share of 0.73 sen for 4QFY2024, compared with 0.48 sen for 4QFY2023.

The group posted a record quarterly revenue of RM96.42 million, up 17.3% from RM82.19 million in 4QFY2023.

No dividend was declared for the quarter under review.

For the financial year ended Dec 31, 2024 (FY2024), Master Tec’s net profit grew 14.9% to RM27.01 million from RM23.51 million in FY2023, as revenue increased 13.5% to RM324.04 million versus RM285.44 million a year earlier.

Looking ahead, Master Tec noted that demand for wires and cables in Malaysia is expected to continue growing in line with industrialisation and infrastructure spending.

In view of expected growth in demand, the group, which manufactures low-voltage power cables, plans to venture into the manufacturing of medium-voltage power cables as well as expand market coverage via export sales.

It also said its RM3.74 million share subscription of a 51% stake in Sediacom Sdn Bhd, which was completed in October last year, provides the group with an opportunity to expand into the power infrastructure utilities market.

In a separate statement, Master Tec executive director Tee Kok Hwa said the group is set to bolster its manufacturing capabilities with the full completion of its new plant in 4Q2024. This expansion will add 3,600 tonnes per year of production capacity for medium-voltage power cables, supporting the group’s long-term growth and market demand.

In FY2024, Master Tec achieved an actual production utilisation of 9,077 tonnes from the production capacity of 9,500 tonnes for low-voltage power cables.

"As we move into FY2025, we are focused on further strengthening our business by enhancing operational efficiencies to mitigate cost pressures, maximising synergies from the Sediacom acquisition to drive contract revenue growth, and expanding our trading segment, which continues to perform exceptionally well," he added.

As at Dec 31, 2024, the group’s order book stood at RM88.44 million, with RM68.71 million from manufacturing orders and RM19.73 million from contract revenue. "This strong order book provides solid revenue visibility for the upcoming financial year," said Tee.

Shares in Master Tec ended three sen or 2.78% lower to RM1.05 on Monday, valuing the group at RM1.07 billion.