KUALA LUMPUR: Bintai Kinden Corp Bhd returned to the black in the second quarter (Q2) ended September 30, 2021, with a net profit of RM511,000 from a net loss of RM2.85 million in the same quarter a year ago.
In a statement today, the company said its gross profit margin for the quarter had improved significantly to 43.1 per cent from 31.1 per cent a year ago, driven by variation orders from completed projects in mechanical and electrical engineering (M&E) segment.
Revenue for the quarter increased 39.6 per cent to RM17.14 million from RM12.28 million due to the gradual recovery from the negative impact of the Covid-19 pandemic, which was first felt in Q2 FY21.
For the cumulative six-month period, Bintai Kinden registered a net profit of RM2.02 million from a net loss of RM4.16 million, while revenue increased 13.2 per cent to RM29.41 million from RM25.97 million.
Deputy chief executive officer Azri Azerai said the company is optimistic of future growth in the financial year ahead in tandem with the recovering local economy as more and more sectors reopen.
"Looking forward, the board will continue to focus on its core businesses in the M&E segment and endeavour to secure more opportunities and recurring projects in Malaysia that can contribute positively to the future earnings of the company.
"We remain positive on the prospects of the company supported by the gradual reopening of the local economy," he said.
Bintai Kinden on Monday obtained shareholders' approval to acquire a 100 per cent stake in Johnson Medical International Sdn Bhd for RM50.0 million.
The acquisition will allow the company to expand its existing customer base and widen its M&E service offerings to include the healthcare services industry in Malaysia.
It will also guarantee a cumulative net profit of RM9.10 million over two years, which translates into an average net profit of RM4.55 million for FY22 and FY23.
The acquisition is expected to be completed by the first half of the year FY22.