TILES manufacturer and information technology (IT) company YB Ventures Bhd (formerly Yi-Lai Bhd) is able to maintain its profitability during its 3Q FY2021 ended Sept 30, 2021 despite adverse impact from the full movement control order (FMCO) from June 1 to end-August.
Interestingly, the company remained profitable during the quarter under review mainly due to the sale of old stocks and further operational cost controls, according to its Bursa Malaysia filing.
YB Ventures saw its net profit edged down by 62.8% year-on-year (yoy) to RM2.6 mil from RM7 mil in the corresponding quarter a year ago. The lower net profit was in line with a 70.8% plunge in the company’s revenue to RM8.6 mil in 3Q FY2021 from RM29.55 mil in 3Q FY2020.
Despite the weaker earnings in the 3Q FY2021, YB Ventures’ chairman Tan Sri Ali Hamsa is optimistic with the recovery going forward from re-opening of the economy and the company’s operations.
“In October, the group has resumed operations at 100% capacity after all operational workers have completed their second dose of vaccine in line with the guidelines set out by the Health Ministry,” Ali pointed out.
“The resumption of operations will help clear up the backlog orders that have built up since the MCO 3.0 which will subsequently drive up the group’s earnings in 4Q FY2021.”
According to YB Venture’s executive director Lee Boon Siong, the surge in orders during 3Q FY2021 was mainly driven by its new flagship product – the Talos Living Tiles – which are the group’s healthy-driven premium tiles that have received overwhelming responses from customers and property developers.
“The research that we put in to ensure that our products meet the demand of our customers and property developers who are more health-conscious and aware of the importance of health and sustainability of building materials has started to bear fruits,” he noted.
“Based on the increasing orders and demand, we’re confident of a strong recovery going beyond the 4Q FY2021.”
YB Ventures is in the midst of completing its private placement exercise for 20% of its total number of issued shares to raise between RM21.1 mil and RM145.9 mil for among others, the installation of rooftop solar PV (photovoltaic) system at its factory building and warehouse in Kulai, Johor, future viable investments and working capital.
“This is in line with the group’s direction to continue with cost optimisation efforts given installing solar PV systems in our factory and warehouse will significantly reduce our current electricity consumption of around RM12 mil,” added Lee.
At the close of today’s trading, YB Ventures was down 0.5 sen or 1.15% to 43 sen with 328,000 shares traded, thus valuing the company at RM104 mil. – Nov 29, 2021
