So long revenue can continue increase YoY, to move to be next LCTITAN is possible. Samchem with 2QR result already achieve 70% of last year total revenue. Very likely this year they can achieve > 30% revenue increase as compare previous year.
The revenue of the Group for the current quarter of RM131.235 million was 22.7% higher than RM106.955 million recorded in the corresponding quarter in the preceding year mainly due to higher quantities of products sold. The Group's profit before tax increased by 77.2% to RM17.054 million from RM9.622 million and was mainly a result of higher quantities and also higher average selling prices of products sold in the current quarter under review. The Group recorded 24.3% higher revenue of RM258.100 million for the six months ended 30 June 2021 as compared to RM207.652 million recorded for the same period last year on higher quantities of products sold. Profit before tax of the Group for the same period increased by 53.1% to RM34.406 million from RM22.467 million and was mainly a result of higher quantities and also higher average selling prices of products sold.
Revenue for the current quarter increased by 23.98% to RM42.34 million from RM34.15 million recorded in the corresponding quarter of last financial year. Profit before tax increased to RM4.12 million compared to RM3.71 million achieved in the preceding year corresponding quarter.
For the 6 months ended 30 June 2021, the Group’s revenue increased by 25.75% to RM77.91 million from RM61.96 million recorded in the preceding year corresponding period. Profit before tax reduced to RM6.55 million from RM6.77 million recorded in the corresponding period of last financial year. Despite the increase in revenue, profit before tax has reduced mainly due to lower government grants received during the current financial period compared to the corresponding period of 2020.
Revenue contributed by the Malaysia and Singapore operations has increased by 118.13% and 5.78% respectively compared to the preceding year corresponding period. The Malaysia operations contributed 30.83% of the Group’s revenue with the balance coming from Singapore operations. Our associate in Canada has incurred losses during the current Quarter mainly due to its expansion into new markets in Canada.
For the second quarter ended 30 June 2021 (2Q’21), the Group’s sales revenue increased to RM35.0 million from RM19.0 million in the corresponding quarter last year (2Q’20), recording a surge of 84% on impressive sales growth in both the EMS and Cloud Computing (Cloud) businesses.
The major source of revenue and profit of the Group is from its manufacturing segment (99%). For EMS activities (81%), orders are expected to increase in the long run from existing customers and potential new customers through its fully built-up vertical integrated manufacturing facilities which will be further improved in operation for the coming years. As demand for mobile energy devices is expected to be in big demand in the future, the management has invested in Artificial Intelligence (AI) and a new Research and Development (R&D) division at the beginning of FY2021 to enhance manufacturing capabilities and competitive edge as the preferred EMS player. The management expects to be smoothen in coming quarters. However, any drastic fluctuation of Ringgit Malaysia against USD and global development of COVID-19 will be the main factor affecting its performance in the near future. Revenue derived from the manufacturing activity of raw wire & cable (16%) will continue to grow, with consistent profit margin in near future. There is an increasing trend of the copper price since the end of FY2020. However, this division is able to maintain its profit margin as the selling price quoted to customers is pegged to the copper price determined according to the market. Even though this division is also seriously affected by global spread of COVID-19 and MCO, this segment is expected to maintain its profit margin as usual and secure more orders from its customers. The revenue from cable assembly & wire harness (2%) activities in Thailand is expected to remain flat in coming years due to low order expected from its major customer affected by technology change. However, with its set-up small-scale facilities for plastic parts and PCB assembly, the management believes this division still have high potential to explore wider new business in Thailand market. The trading segment (1%) will continue to promote respective parent companies products for the customers in the ASEAN market. However, the management does not expect significant growth from this segment in the near future due to the lack of attractive electronics products from the parent companies.