SIAB HOLDINGS REPORTS SECOND CONSECUTIVE PROFIT IN Q2 FY2024

 Malaysia's Construction Industry Set for Robust Growth, Opening New Opportunities for Siab

KUALA LUMPUR, 26 AUGUST 2024 – Siab Holdings Berhad (“Siab” or the “Company”), an established player in Malaysia’s construction industry, has announced its financial results for the second quarter ended 30 June 2024 (“Q2 FY2024”), marking its second consecutive profitable quarter. The Company achieved a gross profit of RM2.55 million, a significant improvement compared to the gross loss of RM3.04 million reported in the previous year's corresponding quarter (“Q2 FY2023”).

For Q2 FY2024, Siab recorded a revenue of RM38.26 million, a decrease from RM67.36 million in Q2 FY2023. The reduction in revenue is largely attributed to fewer ongoing projects compared to the previous year’s corresponding quarter.

Compared to Q1 FY2024’s revenue of RM26.26 million, the Company achieved a robust 45.7% increase in revenue during the second quarter, driven primarily by a higher level of construction activities in ongoing projects. Notable construction projects secured recently include the RM94.28 million construction of a processing factory by Mahsuri Food Sdn. Bhd. and a RM106.80 million residential property project by Murni Lapisan Sdn. Bhd., an indirect subsidiary of IJM Land Berhad. Despite this revenue growth, Siab maintained a consistent profit before tax (“PBT”) of RM0.11 million, mirroring the PBT recorded in Q1 FY2024. This steady profitability underscores the effectiveness of the Company’s continued focus on cost management and operational efficiency.

Mr. Ng Wai Hoe, Group Managing Director of Siab Holdings Berhad commented, "We are encouraged by our ability to maintain profitability for the second consecutive quarter. The acquisition of Taghill Projects Sdn. Bhd. (“Taghill”) has been instrumental in enhancing our project portfolio, allowing us to leverage each other's strengths and further solidify our market position. With the recent addition of experienced leaders to our board, we are more optimistic about the future. We will continue to take a cautious approach as we navigate the current market environment, with a commitment to delivering value to our stakeholders."

To recap, Siab has completed a rights issue exercise which raised over RM92.00 million. This supports the acquisition of Taghill, a construction project and contract management consultancy company. The Group’s order book stood at RM1.48 billion as at 30 June 2024 and Taghill has committed to a profit guarantee of at least RM24.00 million for the financial years 2024 and 2025 on an accumulative basis.

Additionally, the Board of Directors of Siab Holdings Berhad has announced a proposal to change the Company’s name to Taghill Holdings Berhad (“Taghill”), reflecting its strategic integration with Taghill Projects Sdn. Bhd. This proposed name will subject to shareholders approval at an Extraordinary General Meeting (“EGM”) on 18 September 2024.

The construction industry in Malaysia expanded by 6.3% from RM53.44 billion in 2022 to RM56.69 billion in 2023 and is expected to grow further by 6.8% to RM60.49 billion in 2024. This growth is supported by the largest-ever development expenditure allocation of RM99.0 billion outlined in the 2nd Belanjawan MADANI, which is expected to drive substantial growth across all subsectors of the industry. Additionally, the Malaysian Government’s continued focus on home ownership, with allocations totaling RM2.47 billion for housing projects, positions Siab to capitalise on these opportunities. With a stronger board and enhanced capabilities, Siab is well-prepared to deliver long-term value to its stakeholders in this expanding market.