Ageson’s 3Q FY6/2022 net earnings jumps 42% as revenue more than doubled

MAIN Market-listed Ageson Bhd has maintained a solid growth momentum for its 3Q FY6/2022 ended March 31, 2022 as its revenue and net profit spiked during the quarter under review as compared to the corresponding quarter a year ago.

The group posted a 41.8% year-on-year (yoy) jump in net profit to RM8.8 mil (3Q FY6/2021: RM6.23 mil) in line with higher trading revenue in the quarter which was offset by the impairment on receivables.

Revenue during the period more than doubled to RM103.86 mil from RM48.78 mil in 3Q FY6/2021 mainly due to the higher billing recognised from the construction material trading.

“Construction remains the sole contributor to the group’s revenue. The low market sentiments are still impacting the property development division amid the spread of COVID-19 Omicron variant,” commented Ageson’s executive director Datuk Seri Chin Kok Foong.

Datuk Seri Chin Kok Foong

“However, we’re confident that proactive measures undertaken in the trading of building materials and the re-opening of the economy will drive recovery of our property development business.”

Indeed, Ageson has maintained its growth momentum despite the disruption of the COVID-19 pandemic and the movement restrictions imposed to contain the spread of infections.

During the first nine months of its financial year ending June 30, 2002, Ageson has recorded a growth of 45.5% in its net profit to RM34.47 mil from RM23.69 mil posted in the corresponding period a year ago.

The strong performance was in line with the group’s revenue, which has spiralled 106.2% to RM237.09 mil in 9M FY6/2022 from RM114.97 mil in the 9M FY6/2021.

According to Chin, the strong performance of the group is a testament to the management’s track record and is optimistic that the outlook for 2022 will be positive given the recovery of Malaysia’s economy.

Moreover, the re-opening of the economy in the post-COVID era will allow the group to reduce its dependency on its construction division as the property development sector gains momentum.

“We will focus on both the construction and property development sector as business sentiment recovers. This is evident from the award of the development right to carry out a mixed development project in Perak last year,” Chin pointed out.

“We’re also intensifying our efforts to improve our overall operational efficiencies across existing processes to improve margin. As a result, the board is cautiously optimistic that the group will record a satisfactory performance in our FY6/2022,” he added.

At the close of today’s trading, Ageson was down 0.5 sen or 2.33% to 21 sen with 671,600 shares traded, thus valuing the company at RM65 mil. – May 19, 2022

Subscribe and get top news delivered to your Inbox everyday for FREE