SCOMNET 0001 SUPERCOMNET TECHNOLOGIES BERHAD records highest ever quarterly net profit and revenue, declares 0.5 sen dividend

 SCOMNET 0001 SUPERCOMNET TECHNOLOGIES BERHAD records highest ever quarterly net profit and revenue, declares 0.5 sen dividend

KUALA LUMPUR (Nov 22): Supercomnet Technologies Bhd (Scomnet)’s net profit for the third quarter ended Sept 30, 2022 (3QFY22) jumped 44.43% to RM10.1 million from RM7 million in the same period last year, driven by an increase in sales contribution from its new and existing clients, and favourable foreign exchange.

Earnings per share was up at 1.33 sen from 0.93 sen previously, the cables and wires manufacturer’s bourse filing on Tuesday (Nov 22) showed.

Quarterly revenue climbed 40.56% to RM45.14 million from RM32.12 million in the same period a year ago, due to an increase in demand from all of the group’s segments, namely medical, automotive and industrial.

Notably, the group’s latest quarterly net profit and revenue are the highest ever. Scomnet’s previous best quarterly net profit was set in the immediate preceding quarter (2QFY22) at RM9.4 million, while its previous best quarterly revenue was in 4QFY21 at RM43 million.

Continuing from the previous quarter, Scomnet’s automotive segment continued with its momentum, having recorded a higher revenue contribution at 14%, compared to 10% in the previous period. Revenue contribution for the industrial segment also increased to 30%, compared with 19% in the previous period.

Meanwhile, the medical segment, which continues to be a key contributor to the group, saw a revenue of 56% as compared to 71% in the last corresponding period.

The group declared an interim single-tier dividend of 0.5 sen per share — lower than the 1.5 sen declared in 3QFY21 — payable on Dec 22, with the ex-date and entitlement date to be on Dec 6 and Dec 7, respectively.

According to Scomnet in a separate statement, the group has consistently been paying dividends of 1.5 sen over the last four years since FY18. This is the first time the company is announcing an additional 0.5 sen within the financial year itself.

“While the company remains financially prudent, it will actively look into its dividend payout, in tandem with its capital expenditure (capex) requirements and profits,” it said.

For the first nine months (9MFY22), Scomnet’s net profit increased 55.64% to RM26.91 million from RM17.29 million in the same period a year earlier, as cumulative nine-month revenue grew 18.1% to RM120.98 million, from RM102.44 million in 9MFY21.

Scomnet noted that it continues to be in an extremely strong position, with cash in its books of RM20.14 million for the period, besides having zero borrowings.

The group’s other liquid assets include its financial assets of RM120.88 million and short-term deposits of RM24.85 million, and as such, has a war chest of roughly RM165.87 million.

On prospects, it said: “Backed by our growing financial position, Scomnet is on the lookout for earnings accretive mergers and acquisition in the medical segment.

“Looking ahead, we are confident and optimistic of the group’s mid- to long-term prospects, underpinned by continuous growing demand from customers, in addition to several new products in the pipeline.”

“The medical segment will continue to be our main driver, but as you can see, the automotive segment has also picked up. It will be providing some exciting growth and new opportunities in the future,” said Scomnet managing director James Shiue Jong-Zone.

Scomnet’s share price settled on Tuesday, three sen or 1.7% higher at RM1.79, bringing the group a market capitalisation of RM1.36 billion.

http://www.theedgemarkets.com/article/scomnet-records-highest-ever-quarterly-net-profit-and-revenue-declares-05-sen-dividend