KUALA LUMPUR: Ge-Shen Corp Bhd
's board has been actively pursuing acquisitions to boost its revenue and profitability.
The plastic injection moulding and metal stamping company is acquiring 40% of Local Assembly Sdn Bhd and 60% of both Amity Research & Development Sdn Bhd and Amity Technical Services & Consultancy Sdn Bhd. These acquisitions are expected to be completed in the second half of 2024.
“With the inclusion of more capabilities in the electronics manufacturing services (EMS) sector, the board envisage that the company can evolve, change and become a high-tech company with higher margins,” Ge-Shen said in a filing with Bursa Malaysia.
In the second quarter ended June 30, Ge-Shen’s net profit more than doubled to RM4.5mil, or earnings per share of 3.52 sen against RM2.2mil, or 1.98 sen in the previous corresponding quarter.
Revenue rose 25% to RM75.1mil from RM60mil achieved a year ago.
“In this quarter under review, Ge-Shen performed considerably better than the previous year's quarter just as revenue was higher with contributions from Penang and Vietnam factories as well as from a newly acquired subsidiary in Kedah, despite lower sales from both Johor factories.
“The profitability of the group increased in line with increase in sales as a result from higher economies of scale, better cost management and the right size of headcount in each of the factories as well as was strengthened by gain on deconsolidation of Demand Options Sdn Bhd,” Ge-Shen said.
In the first half to June 30, Ge-Shen posted a net profit of RM7.5mil on revenue of RM149mil.
Ge-Shen closed up 10 sen to RM3.82 with 13,800 shares traded.
