Southern Cable Group Bhd managing director Tung Eng Hai
KUALA LUMPUR: Southern Cable Group Bhd
is currently applying for UL certificates for several new products to target the United States (US) market to improve export sales.
“The group is also in the process of formalising an agreement with a US-based customer to supply various power cables and wires,” the cable and wire manufacturer said in Bursa filing.
Barring unforeseen circumstances, Southern Cable’s outlook remains positive for the financial year ending Dec 31, 2023, it added.
In a separate statement, managing director Tung Eng Hai said the group was seeing an increase in orders by our US customer, which has contributed significantly to first quarter 2023 overseas sales.
“We look forward to maintaining our sales momentum to the US and target more customers, while also enhancing our sales in other overseas markets.”
The group has RM692.7mil current orders in hand to be fulfilled until 2024. These include two power cable and conductor supply contracts worth more than RM120mil secured from Tenaga Nasional Bhd (TNB) in the first half of 2023, a RM83mil power cable and conductor supply contract secured in 2022 from Sarawak Energy Bhd, and other contracts from telecommunications players, EPCC contractors, and resellers.
In the first quarter ended March 31, Southern Cable posted a net profit of RM5.1mil, almost doubled from RM2.6mil last year on better product mix, improved efficiency, and adjusted selling prices to reflect latest raw material prices.
Its revenue jumped 30.1% to RM240.9mil against RM185.1mil previously, driven by increased sales volume from various sectors such as power distribution and transmission, infrastructure, and others.
