TECH innovator Techna-X Bhd (formerly known as Sino Hua-An International Bhd) has reported a turnaround for its 1Q FY2022 ended March 31, 2022 with a net profit of RM14.64 mil (1Q FY2021: net loss of RM23.93 mil).
This included a one-off profit of circa RM7.3 mil from the disposal of some scrap metal as the group has discontinued its metallurgical coke business. Techna-X’s profitability from its main technology business streams further contributed RM6.4 mil.
Similarly, Techna-X also posted a rise in revenue across its main business streams, notably its technology-driven food & beverage (F&B) and the digital & technology businesses, which bagged a revenue of RM21.24 mil in the reporting quarter from RM7.3 mil a year ago.
“We are operating in an ever-changing digital environment that has never been more challenging,” commented the company’s executive director Datuk Jared Lim Chih Li. “However, our positive results have reaffirmed our decision to abort the coke business and re-focus the company’s resources to grow our technology business streams moving forward.”
In fact, businesses acquired since 2019 have gained traction and yielded positive outcomes with several project wins in Malaysia and in other countries.
Some of our recent key projects include, a two-year technology development and support contract from SHT Engineering Sdn Bhd to design and deliver an analytics-enabled public safety and security command system; a five-year exclusive technology partnership agreement with Pesappas Ltd to develop the revenue management system for Kenya Wildlife Service, and a five-year partnership with Borneo ECO Star to digitise aquaculture farming in Malaysia.
According to Lim, the group’s strategic business pillars, namely energy storage, smart city, agritech, electric mobility and communication and security solutions have contributed profitability to Techna-X’s past two financial quarters.
“Our teams have progressed well with positive on-going developments in various countries including China, Croatia, South Africa and Kenya,” Lim noted.
“We will continue to see these business segments reporting sustainable income for the Group and look forward to further strengthening our capabilities in our core energy storage and digital transformation solution businesses,” added Datuk Jared Lim.
“The improved performance was attributable to its relevant business entities’ continued implementation and servicing of existing contracts as well as new project wins coupled with the stemming of losses from its industrial business as a result of discontinuation of the metallurgical coke operations as of end-December last year.”
At the close of today’s mid-day trading, Techna-X was up 0.5 sen or 10% to 5.5 sen with 55.83 million shares traded, thus valuing the company at RM122 mil. – May 27, 2022
