Opcom 2Q net profit jumps more than three-fold to RM2.53m on higher revenue

Opcom 2Q net profit jumps more than three-fold to RM2.53m on higher revenue

KUALA LUMPUR (Nov 24): Opcom Holdings Bhd's net profit in the second quarter ended Sept 30, 2021 (2QFY22) jumped over three-fold to RM2.53 million against RM727,000 reported in the previous year on higher revenue.

The group said on Wednesday that its quarterly revenue went up by 25.82% to RM22.17 million from RM17.62 million, supported by higher sales of fibre optic cables, thixotropic gel, fibre reinforced plastics, engineering services and industrial materials.

For the cumulative six months ended Sept 30, 2021, the group registered a net profit of RM5.17 million from a net loss of RM25,000 while revenue came higher by 77.23% at RM45.1 million from RM25.45 million.

On a quarterly basis, Opcom's net profit fell by 4.5% from RM2.64 million registered in the immediate preceding quarter (1QFY22) while revenue declined by 3% from RM22.93 million in 1QFY22.

Moving forward, the group is cautiously optimistic that the demand for fibre optic cables in Malaysia is expected to increase by laying more fibre optic cables, albeit foreign competition remains a significant challenge to the group.

"The group is diligently observing the market development and exploring business projects/investments which could improve our share-of-wallet and the shareholders' values.

"In tandem with this, the group has taken several measures to build our war chest for future expansion," it said.

Shares in Opcom ended one sen or 0.99% higher at RM1.02, giving it a market value of RM245.4 million.

Since the beginning of the year, the stock has risen by 168.42% from 38 sen reported on Jan 4, 2021.

http://www.theedgemarkets.com/article/opcom-2q-net-profit-jumps-more-threefold-rm253m-higher-revenue