Cable and wire manufacturer Southern Cable Group Bhp (Southern Cable), targeting the construction and infrastructure sectors with its newly-developed aluminium-based cable as copper cable substitute, to mitigate rising copper prices in the past year.
Southern Cable’s aluminium-based industrial cables replicate the conductivity and performance of copper cables in line with industry standards. This will enable the Group to expand its product range and provide a competitively-priced substitute to its clientele.
Managing Director of Southern Cable Group Berhad, Mr. Tung Eng Hai “With this new product, we target to serve more companies in the local construction and infrastructure sectors, which are facing the brunt of rising input prices amongst other cost pressures. This is supported by the strong customer base we have established in the past 28 years with local contractors.”
“Meanwhile, our operations were granted permission from the Ministry of International Trade and Industry to operate at 80% worker capacity currently. Not only that, more than 60% of our employees have completed two vaccination doses, and we target full vaccination in the near term. As a result, we can continue to support various industry sectors in the country by ensuring the smooth delivery of our cables and wires.”
“Moving forward, we are focused on safeguarding our business operations and our essential role to our clientele in key economic sectors.”
In 1H21, Southern Cable’s revenue grew 36.3% to RM328.7 million from RM241.1 million a year ago, on higher sales of cables and wires to power utility companies, as well as improved productivity as compared to last year, where operations were affected by the first movement control order implemented in March 2020.
Of the Group’s total 1H21 revenue, sales of power cables and wires increased 55.2% to RM292.3 million from RM188.4 million, while sales of communication cables and wires decreased 25.1% to RM9.0 million from RM12.0 million previously. Revenue from control and instrumentation cables and wires reduced 54.5% to RM6.4 million from RM14.0 million, and related products and services declined 21.4% to RM21.0 million from RM26.7 million a year ago.
Higher plastic-based and metal-based raw material prices led to 27.0% lower 1H21 net profit of RM6.7 million from RM9.1 million previously.
In the second quarter ended 30 June 2021 (2Q21), the Group recorded a revenue of RM156.4 million and a net profit of RM3.1 million.
There are no comparative figures for the preceding corresponding quarter as the Group was listed on the ACE Market of Bursa Malaysia Securities Berhad on 16 October 2020, and no interim financial report was prepared for the comparative financial period concerned.