Ge-Shen’s second-quarter net profit more than doubled to RM4.5mil.
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 sector, the board envisages 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 an 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 the RM60mil achieved a year ago.
“In this quarter under review, Ge-Shen performed 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,” it said.
In the first half to June 30, Ge-Shen posted a net profit of RM7.5mil on a revenue of RM149mil. “The group will continue to invest in our existing manufacturing facilities occupied by both Kibaru and Polyplas, expanding the production lines to increase the output capacity to cater to new clients,” said chief executive officer Louis Lau.
