KUALA LUMPUR (Aug 11): Cable manufacturer Master Tec Group Bhd (KL:MTEC) saw its second-quarter net profit drop 20.49% year-on-year despite an increase in revenue, due to higher costs.

The net profit for the three months ended June 30, 2025 (2QFY2025), stood at RM6.92 million, down from RM8.7 million a year earlier, according to the ACE Market listed company's filing with Bursa Malaysia on Monday.

Revenue rose 43.89% to RM104.82 million from RM72.85 million, supported by higher revenue contributions from all its business segments.

Administration expenses jumped to RM4.17 million from just RM38,000 in 2QFY2024, which the company attributed to the inclusion of listing-related expenses incurred for the proposed transfer of its listing to the Main Market.

Meanwhile, finance costs rose 81.2% to RM1.09 million from RM600,000, arising from borrowings used to support operational and capital requirements, while income tax expenses increased to RM1.23 million from RM58,000.

Earnings were also hit by a 58.5% fall in the company's other income to RM964,000 from RM2.32 million previously.

For the first six months of FY2025, Master Tec's net profit declined 16.83% to RM11.39 million from RM13.69 million in the previous corresponding period, while revenue increased by a quarter to RM175.06 million from RM139.99 million.

Looking ahead, Master Tec said the outlook for the wire and cable industry in Malaysia remains positive, supported by sustained infrastructure investment, industrial development and national electrification efforts.

As part of its long-term growth strategy, the company is progressing into medium-voltage cable manufacturing, with production facilities already in place and currently undergoing certification. This positions the company to serve higher-value infrastructure and export markets.

On top of that, Master Tec said it is actively enhancing its production capacity and energy efficiency through the acquisition of new machinery and the installation of a rooftop solar photovoltaic system.

These initiatives, it said, are aligned with the company’s commitment to reducing its carbon footprint and supporting the transition towards green energy.

Master Tec had proposed the transfer of its listing to the Main Market in May, less than two years after the company's debut on the ACE Market in January 2024, with an initial offering price of 39 sen.

At Monday’s close, Master Tec shares closed one sen or 0.88% lower at RM1.13, valuing the company at RM1.15 billion.