Summary from SCIB 9237 SARAWAK CONSOLIDATED INDUSTRIES BERHAD Q1FY23 results

 Summary from  SCIB 9237 SARAWAK CONSOLIDATED INDUSTRIES BERHAD Q1FY23 results

Sarawak Consolidated Bhd (SCIB:MK) had reported a normalization of revenue in circa RM30 million ~ RM 35 million for the past 4 quarters. With rationalization of costs which had caused a shrunk of net losses of < RM1 million levels, we expect SCIB to turn profitable in the immediate next quarter.

• Revenue stabilized. SCIB had recorded RM24.16 million and RM6.16 million in manufacturing and construction, EPCC sector respectively, where the revenue had increased 14.49% on year-on-year basis and 15.80% on quarter-on-quarter basis.

• Operational Recovery. The increase in manufacturing revenue were largely caused by economic recovery from the pandemic, and continuous supply of foundation piles for roads upgrading, extension of factories, as well as various school projects in Sarawak, construction, EPCC sector registered a lower revenue however was in-line with the management’s plan to rationalize the costs.

• Minimal Contribution from Trading. The property trading business contributed

• Turning “Black”. The manufacturing operations had recorded an operating profit of RM0.21 million, however dragged by heighted financing costs. Both construction, EPCC and property trading activities had significantly lower losses in the quarter under review.

• Qualifying Opinions. SCIB is in the midst of reaching a common group with its auditor on the qualified opinion matter – in which we expect to be completed in the near term.

• Bright Prospects Ahead. The management of SCIB are cautiously optimistic whereby the company will continue to leverage on its expertise in the field of manufacturing of building materials, and in particularly the Industrialized Building System (IBS) field, which the group had approximately RM564.7 million worth of orderbook on hand.

As the largest precast concrete and IBS manufacturer in Sarawak and Sabah, SCIB is expected to supply up to 500,000 tons of building materials annually together with its three factories located in Kuching, Sarawak. We expected a stronger financial performance to rise alongside with the stabilization of government. Non-Rated.

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