KUALA LUMPUR (Sept 21): Comintel Corp Bhd saw a more than five-fold rise in net profit to RM8.42 million for its second quarter ended July 31, 2023 (2QFY2024), from RM1.57 million a year earlier, on the back of a better performance from its construction segment.

Revenue jumped 308.41% to RM92.30 million from RM22.60 million in 2QFY2023, according to the group's bourse filing.

Quarterly earnings per share rose to 2.2 sen, from 1.5 sen per share previously.

The higher revenue and profitability was attributed to the group's wholly-owned construction subsidiary, Binastra Builders Sdn Bhd (formerly known as Total Package Work Sdn Bhd) with the commencement of newer projects and improving progress of construction work activities.

The construction segment saw revenue surge to RM89.7 million from RM22.1 million in 2QFY2023, while profit before tax increased to RM11.7 million from RM3.1 million.

Cominetel said this segment is expected to continue to deliver positive results and improve the group’s overall results moving forward.

For the six months ended July 31, 2023 (1HFY2023), Comintel's net profit more than doubled to RM14.12 million or 3.7 sen per share, from RM4.61 million or 3.29 sen per share.

Half-year revenue more than tripled to RM151.84 million, from RM49.97 million.

On its prospects, the group noted that Bursa Malaysia had approved its upliftment application from being classified as Practice Note 17 or PN17, effective Sept 5.

It also noted that its construction segment has secured two letters of award and a revised letter of award totalling RM291.8 million for subcontract works from Binastra Construction (M) Sdn Bhd.

However, the group had subsequently cancelled a letter of award accepted on April 26, 2022 worth RM33.8 million mutually agreed by contracting parties amid unpredictable market conditions, leading to increasing construction costs caused by a nine-month delay, said Comintel.

As at July 31, 2023, the group's outstanding order book stood at RM1.5 billion.

“The group will continue to monitor the business environment to ensure prudent fiscal management and sustainable growth moving forward.

“Nevertheless, the group is expected to deliver an optimistic performance for the financial year 2024 based on its existing order book and works toward the replenishment of its order book,” added Comintel.

Comintel's shares closed four sen or 3.20% higher at RM1.29 on Thursday, giving the group a market capitalisation of RM493.42 million.

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