SKB Shutters Corporation Bhd has fared incredibly well in the past year, surging 73.6% to close at 62 sen on Feb 20.

The counter was hovering pretty much at its year low of 30 sen in most of last year until it suddenly shot up sometime in September, touching a 52-week high of 86 sen.

It has since lost some ground but still above its year low of 30 sen.

Indications are now that the manufacturer of roller shutters, steel doors and storage and handling system look prime to break out of its bullish pattern from the 52-week high.

The near-term outlook is bullish with follow-through buying may lift prices to test resistances at 67 sen and 73.5 sen thereafter.

Fundamentally, the company does not look so exciting judging from its 1Q results ended Sept 30, 2023.

It posted flattish net profit of RM2.7 million in 1QFY24 versus RM2.4 million a year ago.

This was on the back of 11.4% increase in revenue to RM24.7 million from RM22.2 million due to increase in sale of shutters and steel door products.

The company was dragged by the volatility in raw materials prices and operational costs.

It shall continue to place strong emphasis on operational efficiency and cost rationalization to improve profitability and sustainable business growth.

That said, SKB Shutters is expected to benefit from the continuous recovery of the domestic construction sector and services sector, especially logistics and digital economy segment.

Interestingly, the company places great emphasis on climate change and ESG-focused efforts

Apart from putting together efforts to adopt ‘Environment’ and ‘Governance’ SKB Shutters is focused on ‘Social’ innovation in creating products that prevents or reduce or if possible, eliminate the risk and loss of lives, property and assets.

Its key elements of the innovation embody features of ready-to-adopt and effective performance in risk management.

The ‘Social’ initiative has seen the wide-implementation of the Insulated Fire Shutters in the last 5 years locally and internationally.

This year, the company launched its breakthrough Powerless Flood Shutter (PFS) in response to the rapid occurrence of flash floods in major cities, affecting communities, industrial and infrastructure globally.

The PFS is deployed automatically without power in anticipation of flood disasters.

It foresees positive interest and acceptance of the PFS among target segment including existing and new warehouse facility, hospital, basement carparks of commercial and infrastructure properties.

SKB Shutters is also in the renewable energy generation business.

The solar energy generation modules, which commenced operations in November 2022, has generated 488 MWh as at 30 June 2023.

This is aligned with its direction in reducing carbon footprint and also generating cost savings to the Group.

There is also potential increase revenue as the company is expected to start the construction of a new plant which will increase the production capacity and cater to the growth and demand of its products of the Group, locally and abroad.