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Syafiqah Salim/theedgemarkets.com
August 21, 2020 15:40 pm +08

KUALA LUMPUR (Aug 21): Kumpulan Powernet Bhd reported a 216% year-on-year jump for its fourth-quarter (4Q) net profit today, boosted by contribution from its new construction-related activities segment.

The group registered a net profit of RM7.31 million for the quarter ended June 30, 2020, compared with RM2.31 million a year ago, as revenue more than tripled to RM39.36 million from RM11.95 million, its bourse filing showed.

The stronger revenue came from the contribution of RM37.92 million from its construction-related activities segment, mainly from preliminary works on construction projects. Its other segments however, comprising property development, manufacturing and others, and property investment, showed lower contributions.

The stronger quarter lifted its annual profit for financial year 2020 to RM12.79 million, some 26 times the RM486,000 it made a year ago, as revenue surged to RM95.84 million, seven times the RM13.22 million it reported previously.

On prospects, Kumpulan Powernet said the group continues to record strong numbers throughout the period despite various challenges posed by the Covid-19 pandemic.

"This is underpinned by our construction and construction-related activities locally and abroad in the segment of energy, utilities and infrastructure. The sector remains active and [has] gotten more exciting from the various incentives and government's effort to pump the economy," it said.

As for the textile manufacturing segment, it said the pandemic has disrupted supply chain, operations and worldwide demand for the industry.

"We have since started operations and received small orders from our clients. Nevertheless, this segment will prove to be challenging and will improve together with the improvement in the world's economy. We are also exploring other products within our textile industry to improve and increase our product offerings to the market," said Kumpulan Powernet.

It also pointed to the RM74.5 million contract that it had secured for the development of a hydropower energy generating facilities in Lao PDR which it announced on June 26.

With RM1.2 billion projects secured, the company said it is confident in its ability to raise the required capital for its business.

"In June 2020, the company raised more than RM50 million in private placement, which was oversubscribed by almost four times. This showed the confidence of the investors in the company, its business and also its business direction," said the group.

At the time of writing, Kumpulan Powernet's shares were up 22 sen or 8.33% at RM2.74, bringing it a market capitalisation of RM295.54 million, after over four million shares were traded.

https://www.theedgemarkets.com/article/kumpulan-powernets-4q-profit-surges-contribution-new-constructionrelated-segment

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