Mestron posts record-breaking earnings in FY2022; proposes 0.15 sen dividend

SPECIALTY pole maker Mestron Holdings Bhd has posted record-breaking earnings for its FY2022 ended Dec 31, 2022 with its net profit having surged by more than three times to RM10.06 mil while its revenue jumped 92.2% to RM112.16 mil from a year ago.

This significant milestone was achieved by Mestron mainly due to the higher sales demands for telecommunication tower and outdoor lighting products amid a faster roll-out of telco infrastructure project following re-opening of the economy.

For its 4Q FY2022 alone, Mestron’s net profit jumped by more than three times to RM3.32 mil from year ago (4Q FY2022: RM1.03 mil) in view of higher sales demands for telco tower and outdoor lighting products.

Meanwhile, the group’s revenue increased by 39.5% year-on-year (yoy) to RM29.99 mil (4q FY2022: RM21.49 mil) mainly due to an increase in sales demands of standard poles, lanterns and specialty poles mainly for telco segment.

“This achievement is a testament to the group’s strong track record in the industry, our hard work and commitment to delivering value to our customers, shareholders, and stakeholders, and the continued support of our valued customers,” commented Mestron’s managing director Por Teong Eng.

Por Teong Eng

In line with the strong FY2022 financial performance, the Mestron board has proposed a first interim single-tier dividend of 0.15 sen/share.

Going forward, Mestron will continue to benefit from the roll-out of the 5G network nationwide as demand for its specialty poles within the telco segment remains strong.

“We have seen a faster pickup in orders for telco towers projects amid the faster roll-out of telco infrastructure projects last year, and we expect to see this momentum continue,” projected Por.

“The re-opening of the economy has helped to escalate the roll-out of the projects. Given our track record in the industry, we’re confident that we will continue to secure new contracts from different telco infrastructure projects.”

He also pointed out that there were signs of recovery in the manufacturing sector towards 2H 2022 amid the re-opening of the economy and transition into the endemic phase of COVID-19.

However, Por stressed that Mestron would remain cautious of the several headwinds from external factors such as the unresolved geopolitical tension between Russia and Ukraine, and the worsening global inflation.

“We will continue to exercise extra vigilance in the business to navigate some of these external challenges in the near term and strive to maintain our growth momentum this year. We will also explore other opportunities to diversify our business and tap on other earnings hpotential going forward,” he added.

At the close of today’s trading, Mestron was up 1 sen or 2.35% to 43.5 sen with 24.7 million shares traded, thus valuing the company at RM417 mil. – Feb 24, 2023

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