1. As compared to 3Q2021, 4Q2021 revenue and EBITDA dropped by 4% and 25% respectively. EBITDA margin closed at 9.4% (1H2020 at 12.1%). For the full year, the Group recorded a record-high profit of RM13.5m in FY2021 (FY2020 was RM4.3m).

2. The Group’s financial position continues to strengthen, turning net cash in the latest quarter with cash holdings of RM40.8m vs total borrowings of RM35m.

3. The management indicated near-term pressure from rising raw materials and logistic costs to impact its margin. Nevertheless, they are hopeful to pass down the cost to their customers.

4. Demand from the 2 key segments i.e. E&E and glove manufacturers remain strong. Both segments would remain as the Group’s growth catalyst for years to come. Management target to grow the business by 10% in FY2022. However, no indication of a net margin target.

5. Business turnaround can be considered a success. We expect better times ahead for the Group. However, we remain cautious about the Group’s profitability given the sharp increase in raw material and logistic costs.