With the anticipated resumption of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project and favourable factors such as the Malaysian government's approximately RM90.0 billion national development expenditure, the Penang Light Rail Transit, MRT 3, and other major infrastructure projects, the construction industry is poised for robust growth.

Just yesterday, Aneka Jaringan Holdings Berhad (ANEKA, 0226), a company specializing in underground and foundation construction, announced impressive financial results. Without further delay, let's delve into the highlights of ANEKA's latest performance.

Revenue Comparison (YoY +11.22%, QoQ +14.09%)

For the first quarter ending November 30, 2023, the company achieved a record-breaking revenue of approximately RM58.78 million, marking a historic high. This revenue represents an increase of around 11.22% compared to the same period last year when the revenue was RM52.85 million. Although the management has not provided a detailed explanation for this growth, it can be inferred that ANEKA successfully completed its projects on schedule.

Similarly, compared to the previous quarter, the company's revenue increased by approximately RM7.26 million or 14.09%.

(Note: ANEKA's fiscal year ends on August 31 each year)

Net Profit Comparison (YoY +129.15%, QoQ +117.68%)

Compared to the net loss of approximately RM4.39 million in the same period last year (1Q23), the company turned the tide and achieved a net profit of approximately RM1.28 million in the current quarter (1Q24). This turnaround is attributed to a gain of approximately RM2.20 million from the sale of machinery in this quarter. Additionally, the company generated approximately RM0.20 million in interest income and rental revenue.

This positive momentum extends to gross profit, with ANEKA achieving approximately RM3.05 million in gross profit in 1Q24, a substantial increase from the approximately RM0.95 million gross loss reported in 1Q23.

In a similar fashion, compared to the previous quarter, the company's net profit also increased by approximately RM0.69 million or 117.68%.

Outlook

ANEKA's Indonesian subsidiary, PT Aneka Jaringan Indonesia (PTAJI), secured its first diaphragm wall project in the first quarter of the 2024 fiscal year. This achievement further strengthens the company's competitiveness in the Indonesian foundation and bored piling sector.

As of November 30, 2023, ANEKA's order book stands at approximately RM253.59 million. Reportedly, around RM227.69 million of these orders originate from Malaysia, while the remaining RM25.90 million is from Indonesia. With the impetus of a robust order book, the management is confident in ANEKA's future financial performance.

So, dear readers, are you excited about the future development of ANEKA?

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Disclaimer: The above is purely for educational purposes and reflects personal opinions. It does not constitute any buying or selling recommendations.

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