Comintel posts net profit of RM6.35mil in 3Q

PETALING JAYA: Comintel Corp Bhd will monitor its business environment vigilantly and undertake periodic assessments to ensure prudent financial management and efficient operating procedures.

In a filing with Bursa Malaysia, the Practice Note 17 group said it will undertake these measures in order to achieve sustainable growth for the financial year ending Jan 31, 2023.

For its third quarter ended Oct 31, 2022, Comintel’s net profit rose to RM6.35mil from RM1.63mil in the previous corresponding period, while revenue in the third quarter improved to RM64.54mil from RM10.68mil a year earlier.

Basic earnings per share stood at 4.53 sen, versus 1.16 sen previously.

Comintel said earnings in the third quarter was mainly driven by the performance of its construction segment.

“The construction segment which is contributed entirely by Total Package Work Sdn Bhd, a wholly owned subsidiary of the company, has achieved a total revenue of RM62.7mil and pre-tax profit of RM8.8mil for the current quarter under review.

“The segment is expected to continue to deliver positive results and improve the group’s overall turnover and profitability moving forward.”

Comintel said its system integration and maintenance services (SIMS) segment reported revenue of RM1.8mil (just about break-even) compared to revenue of RM2.1mil and pre-tax profit of RM600,000 in the corresponding quarter of the preceding financial year.

For the quarter ended Oct 31, 2022, Comintel said the construction segment had secured two letters of award worth RM185.3mil.

The company said one job entailed the construction and completion of work below lowest floor level, piling for swimming pool and bridge from Butirjaya Maxim Development Sdn Bhd.

The other job involves completing the construction of the uncompleted phases from Mammoth Empire Land Sdn Bhd.

“As of Oct 31, 2022, the outstanding order book stood at RM499.4mil.”

For the nine-months period ended Oct 31, 2022, Comintel reported a net profit of RM10.96mil, compared with a net loss of RM231,000 in the previous corresponding period, while revenue improved to RM114.51mil against RM11.58mil previously.

Going forward, as the Malaysian economy recovers after the impact of the pandemic over time, Comintel noted that businesses are expected to recover and grow, while consumer sentiment and purchasing power are anticipated to improve.

“These will then drive the recovery and growth of the property market in Malaysia, which will in turn lead to the recovery and growth of the overall construction industry.

“However, the increase of the minimum wage requirement, shortage of skilled labour, adverse fluctuations in building materials prices and rising logistic costs could adversely affect the group’s profitability.”