Sarawak Consolidated Industries Berhad posted recorded revenue of RM175.3 million for the fifth quarter (the company changed its financial year end) ended 31 March.
Profits stood at RM14.3 million and profit after tax was RM12.2 million, the construction/ engineering, procurement, construction and commissioning (“EPCC”) business was the largest contributor to revenue at RM155.7 million and PBT at RM16.1 million.
SCIB’s manufacturing business meanwhile recorded revenue of RM19.5 million and loss before tax of RM1.8 million for the quarter under review due to a reduction in demand for cement products because of project delays stemming from the COVID-19 pandemic.
Citing times are challenging, Group Managing Director Rosland bin Othman looks to optimise resources while strategising on opportunities. He noted that the industry face challenges from supply-chain disruptions, project deferments, rising raw material prices as well as additional costs from safety procedures arising from the standard operating procedures to curb the virus.
However, the company is confident on the continued adoption of industrial building system (“IBS”) for public infrastructure projects which will bring positive impact being the largest pre-cast concrete and IBS manufacturer in East Malaysia.
SCIB is looking to expand further into Peninsular Malaysia while continuing operations in East Malaysia as it is already linked to mega infrastructure projects valued at RM22 billion in Sarawak. In 2021, its manage to secure few projects related to Prima Corp Malaysia, Perumahan Penjawat Awam Malaysia (PPAM) and potential road maintenance contracts. On the international front, its eyeing projects in Indonesia where the government is relocating the capital to Kalimantan from Jakarta while opportunities in Qatar for facilities in connection to the FIFA World Cup, Oman’s special economic zone and the UAE’s World Expo facilities.
With regards to the recent share price performance, Rosland clarifies that SCIB and Serba Dinamik Holdings are two separate companies and business segments that share a common shareholder but have independent and separate management.
Accordingly, for the cumulative 15 months under review, the Company recorded revenue of RM691.3 million. Both PBT and PAT posted at RM73.76 million and RM64.37 million, respectively.
As part of SCIB’s expansion and plans to become a one-stop solution provider for IBS, the Company has set up mobile facilities for building materials supporting projects in Peninsular Malaysia, set up a lightweight system plant to complement the IBS provision and adopted 3D printing technology for a more cost- and time-efficient approach to projects that also minimises the risk of labour shortage.
The Company has an order book of RM2.4 billion as at end-March 2021 with earnings visibility for FYE 2021 and a longer visibility up to 2030.