Cable and wire manufacturer Southern Cable Group Berhad (Southern Cable) made a strong start to the year with RM5.1 million net profit in the first quarter ended 31 March 2023 (1Q23), nearly doubling from RM2.6 million in the previous corresponding quarter on better product mix, improved efficiency, and adjusted selling prices to reflect latest raw material prices.
The 1Q23 group revenue rose 30.1% to RM240.9 million, versus RM185.1 million previously, driven by increased sales volume from various sectors such as power distribution and transmission, infrastructure, and others.
The higher sales volume in 1Q23 was also supported by increased production efficiency. The Group onboarded additional workforce in the fourth quarter of 2022, which boosted cable and wire capacity by 15% to 38,780 kilometers per annum.
Managing Director of Southern Cable Group Berhad, Tung Eng Hai (pic) said: “With our enlarged capacity, Southern Cable is poised to capture the growing demand for cables and wires from various sectors. This readiness allows us to accommodate a larger volume of orders.”
“Furthermore, our recent wins of more than RM120 million year-to-date from Tenaga Nasional Berhad indicates the return of the infrastructure rebuilding phase. This stance by customers, together with our larger and more efficient capacity, will contribute towards our continued growth.”
The Group has RM692.7 million current orders in hand to be fulfilled until 2024. Major orders include power cable and conductor supply contracts from Tenaga Nasional Berhad and Sarawak Energy Berhad, as well as other orders from EPCC (Engineering, procurement, construction and commissioning) contractors, and resellers.
Geographically, the Group’s domestic revenue recorded a 27.6% increase to RM227.1 million in 1Q23 from RM177.9 million previously in line with the nation’s improving economic activities.
Revenue from overseas rose 91.9% to RM13.8 million in comparison to RM7.2 million previously, as the Group delivered more orders to the United States (US).
Tung added: “We are seeing an increase in orders by our US customer, which has contributed significantly to 1Q23 overseas sales. We look forward to maintaining our sales momentum to the US and target more customers, while also enhancing our sales in other overseas markets.”
