Pole maker Mestron Holdings Bhd saw its net profit double to RM4.02 million in the second quarter ended June 30, 2023 (2QFY2023) from RM2.01 million a year ago.

KUALA LUMPUR (Aug 16): Pole maker Mestron Holdings Bhd saw its net profit double to RM4.02 million in the second quarter ended June 30, 2023 (2QFY2023) from RM2.01 million a year ago, amid a reduction in raw material prices and higher sales demand for specialty poles, mainly for the telecommunication segment.

Revenue jumped 56.66% to RM37.81 million from RM24.13 million, driven by higher sales demand of standard poles and specialty poles for the telco segment, the group said in a bourse filing.

For the first six months of FY2023, Mestron’s net profit jumped 94.15% to RM6.58 million from RM3.39 million for the same period of FY2022, as revenue rose 42.07% to RM64.7 million from RM45.54 million

The group expects its full-year performance to remain challenging following the uncertainty in the local and international economy due to the foreign exchange volatility and increase in competition with lower quality products.

“The group will explore other opportunities and is looking to diversify the business to expand our sources of revenue and include other sources of recurring income as a source of our business income,” it said.

Shares in Mestron closed half a sen or 1.12% higher at 45 sen on Wednesday (Aug 16), with a market capitalisation of RM440.43 million.