KUALA LUMPUR: Concrete Engineering Products
Bhd (CEPCO) returned to the black with a net profit of RM2.64mil in the second quarter ended Feb 28, compared with a net loss of RM2.6mil a year earlier.
Quarterly revenue edged up to RM10.7mil from RM10.5mil, while earnings per share stood at 3.54 sen versus a loss per share of 3.44 sen previously.
For the first six months ended Feb 28, CEPCO posted a net loss of RM236,000 on 5.6% higher revenue of RM23.8mil.
“The group expects the operating environment for the financial year ending Aug 31, 2026 (FY26) to remain challenging, amid continued uncertainties in both domestic and global markets,” it said.
CEPCO said global economic recovery is expected to remain subdued, weighed down by geopolitical tensions, US-China trade frictions, the Russia–Ukraine conflict and US tariff measures.
“These developments have contributed to heightened volatility in commodity prices and disruptions to global supply chains,” it said.
The group said energy remains a significant component of production costs, particularly in clinker production and transportation, with sustained increases in fuel and electricity prices expected to raise manufacturing and distribution expenses.
It added that higher logistics and freight costs could further affect cost efficiency, putting pressure on margins.
CEPCO said domestic construction demand will be supported by infrastructure and private projects, though growth may moderate amid cautious sentiment and tighter conditions, while export markets remain pressured by weak demand and currency volatility.
Earlier this month, CEPCO received an unconditional mandatory takeover offer from YTL Cement Bhd at RM2.60 per share in cash, following the latter’s proposed acquisition of a 53.49% stake for up to RM103.79mil.
CEPCO shares ended flat at RM2.60, bringing year-to-date gains to about 140.7%.
