PETALING JAYA: Wong Engineering Corp Bhd’s (WEC) net profit for its first quarter ended Jan 31, 2022 shrank to RM243,000 from RM2.01mil in the previous corresponding period, mainly due to lower billings as well as share of losses from an associate.

       As a result, WEC said in a filing with Bursa Malaysia yesterday that its construction and property development segment suffered a marginal pre-tax loss, which was offset by improved profits from the group’s manufacturing segment as result of higher revenue.

       Revenue in the first quarter dropped to RM18.52mil from RM24.79mil a year earlier.

       WEC said the drop in revenue was due to lower billings from construction jobs.

       “The Kuchai Lama project approaches its completion stages, offset by higher sales from manufacturing that was driven by strong demands by customers from the electrical and electronics (E&E) sector.”

       WEC said the construction project at Kuchai Lama recorded billings of RM4.30mil, which was a drop of RM10.48mil (down 71%) as the project is nearing its completion.

       “The segment suffered a marginal pre-tax loss (down 100%) due to the lower billings and share of loss from an associate company.”

       Commenting on its manufacturing division, WEC said revenue grew by RM4.23mil (up 42%), driven by strong demand arising from customers in the E&E and semiconductor sectors.

       “The segment turned around and recorded RM760,000 pre-tax profit (up 520%) as a result of improved sales, notwithstanding impact from higher cost of raw materials, utilities and other consumables.”

       Commenting on its prospects, WEC said it anticipates the near-to-medium term outlook to remain positive, buoyed by healthy orders in the manufacturing segment from customers in the semiconductor and E&E sectors.

       “The group is also working closely with existing and new potential customers on securing new orders to drive growth and expansion.” However, WEC said it remains cognisant of the volatile business environment.