Master Tec Group Berhad (Master Tec) has announced its financial results for the third quarter ended 30 September 2024 (Q3 FY2024). The Group published a record revenue of RM87.6 million, a 20.3% increase compared to the previous quarter (Q2 FY2024), driven by robust demand for low-voltage power cables and steady growth in both local and export markets.
For Q3 FY2024, Master Tec achieved a gross profit of RM9.9 million, with a gross profit margin of 11.3%. Profit before tax (PBT) came in at RM7.0 million, while profit after tax (PAT) reached approximately RM6.0 million, reflecting the Group’s financial resilience. Compared to the previous quarter, revenue increased by 20.3%, driven by stronger sales in low-voltage power cables. While PBT for the current quarter saw a slight dip of 19.7% or RM1.72 million compared to the preceding quarter. The decline is primarily due to lower administrative expenses in the preceding quarter, mainly related to IPO costs. Excluding these non-recurring IPO expenses, the current quarter’s PBT would be comparable to the previous quarter.
For the cumulative nine-month period ending 30 September 2024, Master Tec reported total revenue of RM227.6 million, gross profit of RM28.1 million, PBT of RM20.9 million, and PAT of RM19.7 million. These results highlight Master Tec’s ability to capture demand effectively and maintain solid margins amidst a competitive market.
Master Tec recently announced the acquisition of a 51.0% equity interest in Sediacom Sdn. Bhd. (Sediacom) through a share subscription of RM3.7 million, which was completed on 23 October 2024. Sediacom’s expertise in underground cable laying and overhead lines installation will strategically expand Master Tec’s capabilities within the power infrastructure sector, creating opportunities for integrated service offerings and access to larger-scale projects. This acquisition, funded through Master Tec’s internal resources, aligns with the Group’s commitment to long-term growth and diversification.
Mr. Tee Kok Hwa, Executive Director of Master Tec Group commented on the strong sets of results, “Our strong Q3 results are a testament to our team’s dedication and the trust our clients place in our solutions. With consistent growth in core segments and promising expansion into power infrastructure through Sediacom, we are well-equipped to strengthen our market presence. Our focus remains on delivering sustainable growth and enhancing value for our shareholders.”
Looking ahead, Master Tec is well-positioned to benefit from Malaysia’s public infrastructure-focused Budget 2025, which allocates RM16 billion for upgrading the national grid and RM300 million for the National Energy Transition Facility (“NETR”). As disclosed in the Prospectus dated 28 December 2023, the ex-factory sales of wires and cables in Malaysia are projected to grow from RM9.61 billion in 2022 to RM11.21 billion by 2025, reflecting a compound annual growth rate (CAGR) of 5.25%. This growth outlook, combined with supportive government initiatives, aligns well with Master Tec’s core focus on low- and medium-voltage cables. Furthermore, the strategic acquisition of Sediacom is expected to enhance the Group’s ability to capitalise on these expanding opportunities within the power infrastructure sector, paving the way for sustained growth and increased market share.
In recognition of the Group’s strong financial performance, the Board of Directors has declared a second interim single-tier dividend of 0.180 sen per ordinary share for the financial year ending 31 December 2024. The dividend will be paid on 16 December 2024, with an entitlement date of 3 December 2024.
As at 5:00 P.M., 18 November 2024, Master Tec’s share price closed at RM1.22, reflecting a market capitalisation of RM1.24 billion.