KUALA LUMPUR: Ageson Bhd posted a net profit of RM19.1 million for its first quarter (Q1) ended 30 September 2021 (FY22), an increase of 275 per cent from RM5.1 million in the same quarter last year.
Revenue stood at RM52.4 million, representing a 144 per cent increase compared to RM21.5 million a year ago.
Ageson achieved positive revenue mainly due to the higher billing recognised from the trading of construction materials.
The increase in net profit, on the other hand, was due to better operating profit and bargain purchases arising from an acquisition of a company in FY22.
Ageson's basic earnings per share have almost tripled to 1.48 sen during this quarter compared to the 0.57 sen in the same period last year.
Executive director Datuk Sri Chin Kok Foong said the construction division was the sole earnings contributor during the quarter as the property development division was impacted by the extension of the Movement Control Order (MCO 3.0) imposed by the government.
"The strong momentum in earnings is expected to continue into the next few months as we see a high volume of construction material trading, mainly due to the increase in pricing.
"Aside from that, we are also optimistic of the recovery of the construction sector following the reopening of the economy and the high vaccination rate seen in Malaysia," he said in a statement today.
Chin's view aligns with the construction industry's positive outlook as Malaysia has achieved a high vaccination rate, and the government is already rolling out its booster shot.
"We're very optimistic on our earnings growth going forward as the government has continued to introduce stimulus packages that are supportive of the economic recovery.
"Our next focus will be our recent collaboration with Zhejiang Group, a conglomerate company based in Hangzhou, Zhejiang, in China.
"The sale and development will create synergistic opportunities and benefits to both parties as we can leverage and tap on the respective party's strength, experience, network and expertise in construction," Chin said.
He said the development will provide earnings visibility for Ageson over the next few years while also expanding the company's income base through the development of built-to-suit industrial space.
"We understand that the first stage of the development is to build an Economic Industrial Park to integrate the ecosystem," Chin said.