Underground utilities and substation engineering specialist MN Holdings Berhad (MN Holdings) reported a profit before tax (PBT) of RM3.29 million in 4QFY23, an increase of RM3.94 million from loss before tax of RM0.60 million for its fourth quarter ended 30 June 2023 (4QFY23) versus a net loss of RM1.09 million a year earlier, in tandem with higher revenues reported by all its business segments.
The Company’s quarterly revenue surged 95.73% to RM49.19 million from RM25.13 million, on higher revenue contribution from its substation engineering segment, which increased from RM7.99 million in 4QFY22 to RM25.57 million in 4QFY23.
For the quarter under review, the Group reported a profit from operations of RM3.51 million, compared with a loss from operations of RM0.45 million a year ago.
MN Holdings Managing Director Loy Siong Hay said: “The higher PBT was contributed by higher construction activities from both the underground utilities and substation engineering segments when compared with the preceding year, as a result of the Group’s business expansion,” he added.
The 4QFY23 performance further lifted MN Holdings’ full FY23 results. The Company’s net profit for FY23 rose 70.16% to RM9.41 million, from RM5.53 million in FY22, as gross profit improved from RM22.93 million to RM33.58 million, an increase of 46.45%.
EPS for FY23 rose to 2.35 sen from 1.62 sen previously, a jump of 45.06%.
Revenue for the year increased 56.75% to RM163.03 million from RM104.00 million in FY22, as contributions from both segments grew with substation engineering segment top line more than doubled from RM27.15 million in FY22 to RM76.18 million in FY23.
Its profit from operations for FY23 surged 60.96% to RM13.81 million from RM8.58 million a year ago.
Looking ahead, Loy said MN Holdings is optimistic with the current FY24 performance as a few of the data center projects awarded to the Company will be completed, allowing the Group to recognised substantial earnings contribution from these projects.
“As at 30 June, MN Holdings’ order book stands at RM337.67 million. These secured contracts are expected to positively impact the Group’s earnings over the next two to three financial years, barring any unforeseen circumstances,” he added.
