KUALA LUMPUR: Bintai Kinden Corp
Bhd is seeking out more earnings-accretive acquisitions as it looks to diversify its business.
In a statement, the mechanical and electrical (M&E) engineering services specialist said the company's net profit for its second financial quarter ended Sept 30, 2022, dove to RM44mil from RM511mil in the same quarter last year due to higher costs.
It said its gross profit margin for the quarter under review had fallen to 15.35% from 43.06% in the comparative quarter after taking into account contribution by variation order of completed projects of the M&E business.
Earnings per share for 2QFY22 was 0.01 sen as compared with 0.13 sen in the same 2021 quarter.
However, the group reported revenue of RM40.56mil, which was a 136.6% improvement year-on-year, mainly owing to higher contribution from the M&E projects recovering from the negative impact of the Covid pandemic.
"“We consider the continuing growth in economic activities following two years of lockdowns as a positive sign for more opportunities in M&E engineering services in Malaysia and Southeast Asia where our focus remains.
"The growth in revenue in the quarter under review is proof of the continuing recovery which we do not take for granted as we assess the risks and opportunities to grow as an investment conglomerate by taking stakes in unique and niche businesses with huge potential," said Bintai Kinden executive director Azri Azerai in a statement.
He added that the group's is diversifying into the provision of telecommunications services and healthcare services through a strategic venture under its subsidiary Johnson Medical International Sdn Bhd.
"We are also leveraging on JMI’s healthcare solutions and medical support systems expertise to explore the Middle East, which is a growing market. Through our 51%-owned Bintai Energy Sdn. Bhd., we are in a partnership distributing flanges and other related piping products in Indonesia for oil and gas (O&G) projects," he said.
Bintai Kinden said its orderbook stood at RM109.92mil, comprising RM102.43mil from M&E projects and RM7.49mil from O&G projects.
