PETALING JAYA: Wong Engineering Corp Bhd swung to a profit of RM2.5mil for the second quarter of its financial year ending Oct 31, 2021 from a net loss of RM85, 000 in the corresponding period a year earlier.
The company attributed its strong performance to progress billings from constructions besides higher sales from its manufacturing segment as well as fair value gains from other investments.
During the quarter in review, Wong Engineering’s revenue doubled to RM22.9mil from RM10.9mil in the previous corresponding period.
The growth was primarily contributed by progress billings from construction segment as worksite operation was halted during the movement control order (MCO) in 2020.
Besides that, the group noted an increase in sales from manufacturing due to higher demand and pull ins by its multinational customers from the electrical and electronics sector.
For the cumulative period, Wong Engineering’s net profit jumped eight-fold to RM4.6mil from RM47.7mil in the six months to April 2020.
Its cumulative revenue almost doubled to RM47.7mil from RM26.8mil, while earnings per share rose to 4.12 sen from 0.49 sen previously.
Wong Engineering said it remained cautiously optimistic that its prospects would remain favourable for FY21.
The ongoing rising cost pressure and supply chain disruption brought about by the Covid-19 pandemic will continue to shape and cast a challenging operating environment over the short to medium term.
“As the group’s manufacturing activities are classified as essential services, our factory continues to operate with 60% workforce on site.
“The management endeavours to optimise the production output and drive higher operating efficiency while complying with the stipulated standard operating procedures by the authorities to deliver and fulfil existing customers’ expectations.
On construction and property development, the Kuchai Lama project is nearing its completion and the group is cautiously assessing the suitability of timing to undertake the proposed development of industrial factories and warehouses in Sepang, Selangor via its associate company Broadway Lifestyle.