MeGroup SJY has reported earnings of RM3.2 million ($9.3 million) for its 1HFY2024 ended Sept 30, a 29.1% y-o-y improvement over its earnings of RM2.5 million for the same period last year.
Earnings per share for 1HFY2024 came to 2.70 sen, also up by 29.2% y-o-y from 2.09 sen in 1HFY2023.
For the half-year period, revenue increased by 6.6% y-o-y to a record RM217.7 million, led by a recovery in its manufacturing business. Revenue from MeGroup’s manufacturing business increased 59.2% y-o-y while its dealership business posted a slight improvement of 0.2%.
The company’s cost of sales increased 5.3% y-o-y to RM196.1 in 1HFY2024.
Gross profit also increased to RM21.6 million, a 20.4% y-o-y growth over RM17.9 million in the year before period. Gross profit margin increased by 1.1 percentage points from 8.8% in 1HFY2023 to 9.9% in 1HFY2024.
As at Sept 30, cash and cash equivalents stood at RM5.59 million.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
The board has declared an interim dividend of 0.4 Sen per ordinary share for 1HFY2024.
Wong Cheong Chee, executive chairman and CEO, says: “For the first half, revenue was driven by a surge in demand from new and existing customers for the manufacturing business, leading to a strong growth momentum.”
“Our dealership business also continues to put up a strong showing — the group was able to fulfil the high demand in the market due to our availability of ready stock in new vehicles,” he adds.
See also: Marco Polo Marine reports lower 2HFY2024 earnings of $10.7 mil, down 42% y-o-y
The company is looking forward to a prudent expansion of its manufacturing facilities. In addition to the completion of its new factory at Kulim Hi-tech Park, equipped with the latest technology advancements to support the mass production of various car models by 3QFY2023, MeGroup intends to expand our existing manufacturing facilities at Balakong, Selangor Darul Ehsan, to increase production capacity through a property acquisition.
For capital recycling, the company is also in the process of disposing of a non-core freehold industry property in Selangor.
MeGroup says it is cautiously optimistic about the Group’s business performance for the financial year ending March 31, 2024.
Shares in MeGroup closed flat at 9.3 cents on Nov 10.
