Signature International Sees Solid Growth Across Kitchen and Wardrobe Segments
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$SIGN (7246.MY)$ achieved a strong revenue performance for the nine months ending 30 September 2024, with revenue reaching RM578.5 million, marking a significant increase from RM450.1 million in the corresponding period in 2023. This robust growth was primarily driven by the Interior Fit-Out Works segment, which contributed RM237.7 million, followed by the Kitchen and Wardrobe Systems segments under the Corten brand and Signature brand, contributing RM189.2 million and RM151.5 million, respectively.
Profit before taxation rose to RM86.9 million, compared to RM64.4 million during the same period last year. The increase was largely attributed to higher profit margins within the Corten brand projects and gains from fair-value investments. $SIGN (7246.MY)$
Profit before taxation rose to RM86.9 million, compared to RM64.4 million during the same period last year. The increase was largely attributed to higher profit margins within the Corten brand projects and gains from fair-value investments. $SIGN (7246.MY)$
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Segmental Insights
1. Interior Fit-Out Works:
• This segment emerged as the largest contributor to revenue, reflecting strong demand and operational efficiencies.
• Revenue totaled RM237.7 million, with profit before taxation at RM31.9 million, showcasing a significant improvement year-over-year.
• This segment emerged as the largest contributor to revenue, reflecting strong demand and operational efficiencies.
• Revenue totaled RM237.7 million, with profit before taxation at RM31.9 million, showcasing a significant improvement year-over-year.
2. Kitchen and Wardrobe Systems (Corten Brand):
• Revenue for this segment stood at RM189.2 million, driven by its niche market appeal and higher project profitability.
• The segment reported a profit before taxation of RM53.9 million, solidifying its position as a key driver of profitability.
• Revenue for this segment stood at RM189.2 million, driven by its niche market appeal and higher project profitability.
• The segment reported a profit before taxation of RM53.9 million, solidifying its position as a key driver of profitability.
3. Kitchen and Wardrobe Systems (Signature Brand):
• Revenue for this brand reached RM151.5 million, primarily from project revenues.
• Profit before taxation was recorded at RM9.3 million, supported by increased efficiency in project delivery.
• Revenue for this brand reached RM151.5 million, primarily from project revenues.
• Profit before taxation was recorded at RM9.3 million, supported by increased efficiency in project delivery.
4. Others Segment:
• Comprising investment holdings and other dormant activities, this segment generated revenue of RM59,000. Gains in this segment were bolstered by fair-value increases in short-term investments and dividends from subsidiaries.
Operational Highlights
The group maintained strong operational efficiencies, as evidenced by improved profit margins across key segments. Higher contributions from project revenues played a pivotal role in the overall profitability. Finance costs remained under control, with an increase of RM2.4 million year-over-year, mainly due to higher borrowings to support the group’s expansion activities.
Financial Position
As of 30 September 2024, the total assets of the group stood at RM1.05 billion, reflecting a stable financial footing. Non-current assets accounted for RM475.1 million, while current assets, driven by trade receivables and cash holdings, reached RM579.3 million. The group’s net assets attributable to equity holders amounted to RM366 million, an increase from RM353.7 million at the end of 2023.
Cash Flow Dynamics
$SIGN (7246.MY)$ generated RM58.7 million from operating activities for the nine-month period, driven by improved collection from trade receivables and efficient working capital management. However, net cash used in investing and financing activities amounted to RM36.8 million and RM56.9 million, respectively, reflecting ongoing investments in property, plant, and equipment as well as dividend distributions.
• Comprising investment holdings and other dormant activities, this segment generated revenue of RM59,000. Gains in this segment were bolstered by fair-value increases in short-term investments and dividends from subsidiaries.
Operational Highlights
The group maintained strong operational efficiencies, as evidenced by improved profit margins across key segments. Higher contributions from project revenues played a pivotal role in the overall profitability. Finance costs remained under control, with an increase of RM2.4 million year-over-year, mainly due to higher borrowings to support the group’s expansion activities.
Financial Position
As of 30 September 2024, the total assets of the group stood at RM1.05 billion, reflecting a stable financial footing. Non-current assets accounted for RM475.1 million, while current assets, driven by trade receivables and cash holdings, reached RM579.3 million. The group’s net assets attributable to equity holders amounted to RM366 million, an increase from RM353.7 million at the end of 2023.
Cash Flow Dynamics
$SIGN (7246.MY)$ generated RM58.7 million from operating activities for the nine-month period, driven by improved collection from trade receivables and efficient working capital management. However, net cash used in investing and financing activities amounted to RM36.8 million and RM56.9 million, respectively, reflecting ongoing investments in property, plant, and equipment as well as dividend distributions.
Prospects and Outlook
Looking ahead, $SIGN (7246.MY)$ is well-positioned to capitalize on its strong order book, which currently includes RM649 million in orders for the Corten brand, RM160 million for the Signature brand, and RM301 million for Interior Fit-Out Works. The recent acquisition of Crownlivin’s business further diversifies its product offerings, enhancing its competitive advantage.
The group remains optimistic about its revenue and profit growth in the coming financial year, backed by its solid order pipeline and commitment to delivering high-quality, innovative solutions.
$SIGN (7246.MY)$ robust financial performance and strategic initiatives highlight its ability to navigate market challenges effectively while leveraging growth opportunities. With its diverse revenue streams and strong financial fundamentals, the company is poised for sustainable growth and profitability.
Looking ahead, $SIGN (7246.MY)$ is well-positioned to capitalize on its strong order book, which currently includes RM649 million in orders for the Corten brand, RM160 million for the Signature brand, and RM301 million for Interior Fit-Out Works. The recent acquisition of Crownlivin’s business further diversifies its product offerings, enhancing its competitive advantage.
The group remains optimistic about its revenue and profit growth in the coming financial year, backed by its solid order pipeline and commitment to delivering high-quality, innovative solutions.
$SIGN (7246.MY)$ robust financial performance and strategic initiatives highlight its ability to navigate market challenges effectively while leveraging growth opportunities. With its diverse revenue streams and strong financial fundamentals, the company is poised for sustainable growth and profitability.
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