PETALING JAYA: United U-Li Corp Bhd reported a net profit of RM9.38mil in the second quarter (Q2) ended June 30 as compared to a net loss of RM4.4mil in the same quarter a year earlier.

       Meanwhile, the cable support systems manufacturer’s revenue more than doubled to RM41.92mil from RM17.2mil on a year-on-year (y-o-y) basis.

       United U-Li told Bursa Malaysia yesterday that its improved bottom line was mainly due to better profit margins achieved on goods sold from the cable support systems as well as the electrical lighting and fittings division.

       The group’s higher revenue generated during the quarter also boosted its earnings.

       United U-Li said its revenue in Q2 of financial year 2021 (FY21) witnessed a sharp growth, considering that the previous corresponding quarter’s performance was significantly impacted by the movement control order initiated by the government, amid the outbreak of the Covid-19 pandemic.

       “For the current quarter ended June 30, this (cable support systems) business segment registered a higher revenue of RM36.08mil as compared to RM14.59mil in the previous year’s corresponding quarter, an increase of 147.34% comparatively,” it said.

       As for the electrical lighting and fittings division, it recorded a higher revenue of RM5.84mil as compared to RM2.61mil in the previous corresponding quarter, an increase of 123.58% y-o-y comparatively.

       Earnings per share was 4.31 sen in Q2 of FY21 as compared to a loss per share of 2.02 sen in the previous corresponding quarter.

       The group announced a one-sen dividend for the second quarter.

       Cumulatively, in the first six months of FY21, United U-Li recorded a net profit of RM19.07mil. In comparison, in the same quarter a year earlier, the group incurred a net loss of RM4.96mil.

       Revenue in the first half period surged 59.3% y-o-y to RM91.13mil from RM57.21mil.

       The stronger revenue was achieved due to higher contribution from both the cable support systems division and the electrical lighting and fittings division.

       “For the current financial period ended June 30, this (cable support systems) business segment registered a revenue of RM76.86mil as compared to RM48.19mil in the previous corresponding period, an increase of 59.5% comparatively,” United U-Li said.

       Meanwhile, the electrical lighting and fittings division reported a revenue of RM14.27mil in the first-half period as compared to RM9.02mil in the previous corresponding period, an increase of 58.24%.

       Despite the ongoing weak macroeconomic conditions, United U-Li believes that the outlook for the domestic and export markets for cable support systems as well as electrical lighting and fittings products is expected to improve in the near future. This is in anticipation of the gradual reopening of the economy.

       “Nevertheless, the group will continue to exercise caution in all its business dealings as local and global market conditions remain uncertain.

       “The group is committed to further improve on product quality and customers’ needs while maintaining efficient operations.”