KUALA LUMPUR: Mestron Holdings Bhd (MHB) achieved a 32.6 per cent year-on-year (YoY) growth in revenue for the financial year ended December 31, 2023 (FY23), reaching RM148.8 million, while net profit was by 17.6 per cent to RM11.8 million.
This achievement comes amid various market hurdles, showcasing the company’s robust growth trajectory.
According to a filing with Bursa Malaysia, the notable contribution of MHB’s revenue, which is approximately 78.6 per cent, was generated from its manufacturing operations.
The increase in revenue was primarily fueled by heightened demand for both standard and specialty poles, particularly within the telecommunications sector.
Moreover, the domestic market continues to stand as MHB’s stronghold, contributing to about 95.2 per cent of its total revenue in FY23, further solidifying its position in the domestic market.
Managing director Por Teong Eng said this year has been a testament to the company’s strength and adaptability in navigating through market volatilities.
“Our significant revenue growth amidst such conditions highlights the unwavering demand for our quality products and our team’s exceptional dedication to meeting our client’s needs,” he said in a statement.
As for the fourth quarter (Q4) FY23, MHB’s revenue increased to RM42.51 million, up from RM29.99 million in the same quarter last year, marking a 41.75 per cent growth.
This increase is primarily attributed to heightened sales demands across its product range, particularly in standard poles, specialty poles, and solar components.
The higher demand in its telco segment, coupled with reduced raw material costs, has contributed to an improved profit for FY23.
The manufacturing segment, notably aimed at the telecommunications sector, remained a major revenue driver, contributing approximately 61.0 per cent of the total revenue for the quarter.
MHB’s FY23 revenue stood at RM148.8 million with a net profit of RM11.8 million after charging off one-time transfer listing expenses of RM800,000.
Looking ahead, MHB remains cautious about the uncertainties in the global and local economy, including foreign exchange volatility and increasing competition with lower-quality products.
“While the landscape remains challenging, our focus on vigilant management and exploring new business opportunities positions us well for sustainable growth.
“We are committed to diversifying our revenue streams and reinforcing our market presence,” Por said.
