KUCHING: Sarawak Consolidated Industries Bhd (SCIB) has a current order book of about RM388 million.
This, according to the company, will provide it with earnings visibility until 2026.
SCIB group managing director Rosland Othman said the company is cautiously optimistic on prospects ahead as it will continue to leverage on its strength as the leading precast and industrial building system (IBS) manufacturer in Sarawak and Sabah, complemented with its track record in engineering, procurement, construction and commissioning (EPCC) projects to bid for new jobs.
In first half of financial year 2023 (1HFY2023), SCIB managed to narrow its group net loss to RM3.69 million (1HFY2022: -RM4.03 million) on expanded revenue of RM66.3 million (RM64.6 million).
In Q22023, group net loss, however, widened to RM2.82 million (Q22022: -RM1.33 million) in line with reduced revenue of RM36 million (RM38.2 million). Losses per share widened to 0.48 sen from 0.27 sen.
In 1H2023, revenue contribution from the manufacturing business rose 6.9 per cent to RM45.7 million (1H2023: RM42.8 million) .The EPCC business, on the other hand, saw its revenue drop marginally to RM20.2 million (RM21.4 million) in 1H2023.
In Q22023, the manufacturing business revenue was down to RM21.6 million (Q22022: RM23.7 million) while the EPCC business turnover remained stable at RM14 million.
Said Rosland: “Our key manufacturing arm, the leading precast concrete and IBS producer in Sarawak and Sabah, continues to be the mainstay in terms of revenue contribution. Manufacturing saw an increase in profit before tax of RM2 million in 1HFY2023 compared with RM0.3 million in 1HFY2022 while manufacturing PBT for the current quarter under review doubled to RM1 million compared with RM0.5 million in the corresponding quarter last year.”
SCIB group’s three factories here have the combined capacity to supply 500,000 tonnes of building materials annually together with its wharf facility that complements construction activities in East Malaysia. The company said its ability to make shipments of building materials across Borneo will be an added advantage for projects in Kalimantan, Indonesia.
SCIB said it will continue to tender for projects in Malaysia and is exploring opportunities in Indonesia where there are existing prospects in the development of the latter’s new capital in Kalimantan.
“The group will seek opportunities through strategic partnerships, such as the one that was recently formed with Bintai Kinden Corporation Bhd,” it added.
Rosland said the Malaysian economy began 2023 with good momentum as the economic outlook gradually improves following strong growth in 2022. The construction sector grew 8.8 per cent for the whole of 2022 supported by all subsectors, with the civil engineering subsector turning around to positive growth of 2.7 per cent.
“Based on these latest developments, we are cautiously optimistic,” he added in a press statement.
Meanwhile, battery maker ABM Fujiya Bhd (AFujiya) plunged into the red with group net loss of RM2.12 million in FY2022 from profit of RM1.51 million in FY2021 despite revenue growth to RM100.8 million from RM90.4 million.
Losses per share was 1.18 sen from earnings per share of 0.84 sen previously.
In Q42022, group slipped into net loss of RM2.13 million (Q42021: +RM3.07 million) as revenue fell to RM26.4 million from RM28.8 million.
Compared to the immediate preceding quarter, the pre-tax loss widened in the current quarter to RM1.75 million from RM0.2 million in Q32022 when revenue recorded was RM25.23 million.
AFujiya attributed the positive results in Q32022 to higher export selling price of its products, reversal of impairment loss on trade receivables and more realised foreign exchange gain.
Commenting on prospects, AFujiya said the global economy remains to be influenced by the effects of the global trade and geopolitical tensions, major slowdown of the economic momentum and relatively higher prices in certain commodities.
“The on-going logistic issues arising from port congestion, shortage of vessels and containers leading to higher freight rates and supply chain disruptions continue to be a source of concern.
“However, the group will remain vigilant and is confident that through continuous improvement in the products and services, efficiency in production, expansion of customer base, both locally and internationally, the group will be able to weather the challenges ahead,” it added.
