Mestron Holdings continues its growth momentum as net profit jumped by more than three times to RM3.3 million in its third quarter ended 30 September 2022 (3QFY2022) as compared to RM1.0 million in the corresponding quarter a year ago.
It was attributed to the higher sales demand for telco tower and outdoor lighting products.
For 3QFY2022, revenue increased by 160.5% year-on-year (yoy) to RM37.2 million from RM14.3 million in 3QFY2021.
The growth in revenue was mainly due to an increase in sales demand for standard poles, lanterns and specialty poles mainly for the telco segment during the quarter under review, as it is shown in the filing with Bursa Malaysia.
The Group’s revenue was mainly derived from the manufacturing segment, which accounts for 87% of the total revenue in 3QFY2022.
Meanwhile, Malaysian market remains the largest, contributing to Mestron’s revenue, accounting for about 95.6% of the total revenue in 3QFY2022.
“The earnings growth recorded is in line with the Group’s expectation as the rollout of 5G network nationwide has helped to sustain demand for our speciality poles for the telco segment. We have established ourselves as one of the key players in the development of telco infrastructure in Malaysia and this result put us in a strong position to record another strong financial year,” Mestron’s Managing Director, Mr Por Teong Eng said.
Its 3QFY2022 has helped the Group to record an increase of 153.9% yoy in its net profit to RM6.7 million during the first nine months of its financial year ending 31 December 2022 (9MFY2022), as compared to RM2.6 million in 9MFY2021.
Revenue jumped by 122.8% to RM82.1 million in the 9MFY2022 from RM36.9 million in the same period a year ago, mainly driven by the sale of standard poles and speciality moles mainly for the telco segment.
In the 9MFY2022, the Malaysian market contributes approximately 94.8% to the total revenue of the Group.
“We have seen a faster pickup in orders for telco towers projects amid the faster rollout of telco infrastructure projects this year. The reopening of the economy has helped to escalate the rollout of the projects. Given our track record in the industry, we are confident that we will continue to secure new contracts from different telco infrastructure projects,” Por added.
“Despite the optimistic outlook, the Group would remain cautious about navigating some of the near-term challenges, including the global supply chain disruptions, rising global commodity and raw material prices, and high shipping costs,” he stressed.
“With the global economic uncertainty in place, we will exercise extra vigilance to navigate these challenges and strive to deliver satisfactory performance this year. At the same time, we will also explore other opportunities to diversify our business and expand our sources of revenue to future-proof our business model,” Por concluded.