Time flies, and once again, it's the company’s earnings season. Today, I would like to share the recent performance report of Aneka Jaringan Holdings Berhad (ANEKA, 0226). As anticipated, ANEKA has achieved commendable results. Adding to the good news, the company recently secured a contract worth RM53.00 million from Grand Dynamic Builders Sdn Bhd to construct a new logistics center in Shah Alam, Selangor.

Furthermore, in May of this year, the company won a sub-contract valued at RM22.50 million from IJM Construction, and an earthworks, piling, pile cap, and substructure works contract worth RM12.90 million from Totalbuildz Sdn. Bhd. This brings the total value of projects secured by ANEKA this year to an impressive RM88.40 million.

Without further ado, let us delve into today's main topic.

Revenue Comparison (YoY +1.45%, QoQ -22.82%)

As of May 31, 2024, the company's revenue stood at approximately RM41.84 million, representing a slight increase of about 1.45% compared to RM41.24 million in the same period last year. 

However, compared to the previous quarter (2Q24), revenue decreased by approximately RM12.37 million, reflecting a decline of around 22.82%. Unfortunately, the management did not provide an explanation for this revenue drop.

Net Profit Comparison (YoY +115.15%, QoQ +364.46%)

Compared to the net loss in the same period last year, the company has turned around to profitability this quarter, achieving a net profit of approximately RM0.56 million, an increase of about 115.15%. This significant improvement is mainly due to a substantial rise in gross profit, which increased by approximately 186.41% to RM4.36 million.

Additionally, the company recorded other income of approximately RM0.96 million this quarter, including gains from the sale of machinery (about RM0.85 million), interest income, and house rental income.

Compared to the previous quarter, the company's net profit also increased by approximately RM0.44 million, an impressive growth of 364.46%. Another noteworthy point is the substantial increase in the company's cash and cash equivalents, which rose by approximately 445.51% to about RM11.43 million.

Outlook

As of May 31, 2024, the company's total order book stood at RM231.38 million. Additionally, contracts totalling RM65.88 million have been secured after May 31. These robust order books are expected to positively contribute to the company’s future earnings and net assets.

In light of Malaysia's recent removal of diesel subsidies, which is expected to impact construction material prices, the management has stated that they will closely monitor and manage this change to ensure cost control and profitability.

Finally, dear readers, what are your thoughts on the outlook for the Malaysian construction industry?

———————————————————————————————————————————————————

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

If you are interested in opening a CGS-CIMB trading account, please sign up using the following link:

https://forms.gle/kZVCyDxUurxChMcg9

———————————————————————————————————————————————————————————