Southern Cable 1Q net profit surges to RM14mil

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 parcel of 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,” 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 United States 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 customers,” 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 US market.

In the first quarter ended March 31, Southern Cable reported a net profit of RM14.1mil, more than double 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% 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 our utilisation rate remains above 80%, preserving our revenue performance for 2024,” Tung said.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

CelcomDigi ready to complete share subscription agreement with MoF Inc and DNB
Press Metal unit to acquire Hong Kong firm stake via share swap
U Mobile ready to build second 5G network upon completion of SSA process with DNB
FSBM Holdings out of PN17
Ringgit retreats to end marginally lower against US$
WCT unit bags expressway lane expansion contract worth RM249.74mil
Fire incident at Hextar Healthcare's Bercham factory
SIDC launches new certification programme in sustainable responsible investment
Hengyuan announces unplanned shutdown of LRCCU unit
Exim Bank, ICBC Malaysia ink MoU to jointly promote use of Chinese yuan

Others Also Read