Ge-Shen Corporation Berhad reported a 57% increase in net profit, growing from RM 2.21 million a year ago to RM 3.47 million in Q3 FY24. Revenue for the quarter also grew by 3.5%, rising from RM 65.59 million a year ago to RM 67.86 million.
The improvement it said was driven by increased revenue contributions from both existing manufacturing plants in Penang and Vietnam, as well as from the Group's newly acquired subsidiary in Kedah.
Compared with the preceding quarter, the Group's revenue has decreased by 9.7% or RM 7.27 million from RM 75.13 million in Q2 this year. The decline is attributable to the delay in delivery orders at customers' request. Ge-Shen also highlighted the foreign exchange losses due to the weakening of the U.S. dollar in the past quarter, which has impacted quarterly growth./
"While we have taken measures to improve our supply chain and focus on higher margin areas such as medical devices and EMS, we remain confident that our diverse product range will sustain our growth and profitability, the Group is on track to achieve better results this year compared to FY2023" Dr. Adrian Foong, Chief Executive Officer of Ge-Shen said.
In a statement today, Ge-Shen noted that, with the recent conclusion of its EGM, the Group has diversified its offerings to include high-performance connectors and components, focusing on expanding into high-speed data product manufacturing,
which is crucial for the rapidly growing data center and telecommunications industries.
On a separate note, the Group via its 100% owned subsidiaries, Ge-Shen Plastic (M) Sdn. Bhd. has proposed to dispose of a piece of industrial land in Tebrau, Johor Bahru for RM 7.6 million on 30th October 2024. The proposed disposal is expected to result in a net gain of approximately RM 5.28 million and will contribute positively to the Group's earning and net asset per share Shares of Ge-Shen closed at RM 3.80, giving it a market capitalisation of RM 488 million. Year to date, the counter has risen by 228%.
