Southern Cable 1Q24 net profit more than doubles to RM14.1mil


Southern Cable Group Bhd managing director Tung Eng Hai

KUALA LUMPUR: Southern Cable Group Bhd is expanding its production capacity to capitalise on growth opportunities.

The group recently acquired a 7.9-acre industrial land with an existing building adjacent to its current facilities in Kuala Ketil, Kedah, for RM14mil.

“The newly acquired property will enable the group to scale up production and meet the increasing demand both domestically and in the United States (US),” the cable and wire manufacturer said in a statement.

Managing director Tung Eng Hai said the group is seeing a significant increase in demand from the US alongside robust growth in the domestic market.

“Trade tensions and shifting supply chains have created a need for alternative suppliers in Asia, and Southern Cable is well-positioned to meet this demand.

“Our new facility will be instrumental in expanding our production capacity and broadening our product portfolio to better serve our US customer,” he said.

The group plans to commence equipping and upgrading the new facility in 2025. The facility is expected to support its target to increase export sales, particularly to the U.S. market.

In the first quarter ended March 31, Southern Cable reported a net profit of RM14.1mil, more than doubled the RM5.1mil posted in the corresponding quarter last year, marking its eighth consecutive

quarter of earnings growth.

Revenue for the period surged 29.5% surge to RM312mil from RM240.9mil previously, on increased demand for power cables and wires across various industries, as well as higher average selling prices.

Additionally, improved margins due to lower raw material costs and better product mix contributed to the strong results.

The group’s orders in hand as at March 31 amounted to RM903mil, up 8.9% from RM829mil as at Dec 31, 2023. These orders are expected to be fulfilled by 2026.

“The sustained momentum underscores the booming demand for cables and wires, mirroring the nation’s rapid expansion. With our solid orders in hand, this ensures the group’s utilisation rate remains above 80%, preserving our revenue performance for 2024.

“The country's ongoing infrastructure projects and the burgeoning demand for data centres present significant growth opportunities. Our extensive experience and established reputation for more than 30 years positions us favourably to benefit from these developments, ensuring we remain a key player in the market,” Tung said.

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Southern Cable , Tung Eng Hai

   

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