MESTRON Holdings Bhd, a manufacturer and distributor of standard poles, specialty poles and solar components, has achieved robust growth trajectory in its FY2023 ended Dec 31, 2023 amid various market hurdles.
The group posted double-digit gains of 32.6% year-on-year (yoy) in revenue to reach RM148.78 mil (FY2022: RM112.16 mil) while its net profit soared by 17.6% to RM11.8 mil (FY2022: RM10.06 mil).
According to the group’s filing with Bursa Malaysia, the lion’s share of its revenue – some 78.6% – was generated from its manufacturing operations.
This was primarily fuelled by heightened demand for both standard and specialty poles, particularly within the telecommunications sector. Moreover, the Malaysian market continues to stand as Mestron’s stronghold, contributing to about 95.2% of its total revenue in FY2023, hence further solidifying its position in the domestic market.
“This year has been a testament to Mestron’s strength and adaptability in navigating through market volatilities,” Mestron’s managing director Por Teong Eng pointed out.
“Our significant revenue growth amidst such conditions highlights the unwavering demand for our quality products and our team’s exceptional dedication to meeting our client’s needs.”
Mestron further reported a significant revenue jump of 41.75% to RM42.51 mil for its 4Q FY2023 ended Dec 31, 2023 (4Q FY2022: RM29.99 mil) which was primarily attributed to heightened sales demands across its product range, particularly in standard poles, specialty poles and solar components.
On the overall, the higher demand in the group’s telco segment coupled with reduced raw material costs have contributed to an improved profit for FY2023. The manufacturing segment – notably targetting the telecommunications sector – remained a major revenue driver by having contributed about 61.0% of the group’s total revenue for 4Q FY2023.
Looking ahead, Mestron remains cautious about uncertainties in the global and local economy, including foreign exchange volatility and increasing competition with lower-quality products.
“While the landscape remains challenging, our focus on vigilant management and exploring new business opportunities positions us well for sustainable growth. We are committed to diversifying our revenue streams and reinforcing our market presence,” added Por.
At the close of today’s market trading, Mestron was down 0.5 sen or 1.32% to 32.5 sen with 12.24 million shares traded, thus valuing the company at RM325 mil. – Feb 28, 2024
