KUALA LUMPUR: ES Ceramics Technology Bhd, a maker of hand formers for rubber glove producers, posted improved margins in the third quarter as the industry rapid capacity expansion drives up demand.
Net profit in the three-month ended Feb 28 surged to RM8.46mil from RM653,000 a year ago.
Revenue more than doubled to RM22.6mil from RM9mil previously, ES Ceramics told Bursa Malaysia in a filing today.
The company said its results were driven by higher sales output from the additional production capacity due to strong demand of formers, improved production activities and higher average selling price.
"The prospects for growth in the rubber glove industry are positive as the industry is expected to continue to be driven by the growth in the global and domestic healthcare industry as one of the essential item in the medical supplies," it said.
ES Ceramics' net cash position with cash & bank balances rose to RM60mil as of end February due to the collections from increased sales and customers paying deposits in advance to secure supply, as well as proceeds from issuance of new shares.
"The Company will continue to execute its business strategies to capitalize and strengthen its position in the industry whilst adopting prudent cash flow management to meet its financial commitments and obligations," it said.