Quality Concrete posted mixed results for 3QFY17
KUCHING: Quality Concrete Holdings Bhd (Quality Concrete) posted a set of mixed financial results for the third quarter of financial year 2017 (3QFY17) ended October 2016.
The company in a filing to Bursa Malaysia said 3QFY17 net losses widened to RM3.86 million from RM2.05 million despite generated higher revenue.
Quality Concrete added 3QFY17 revenue grew by 13.3 per cent yearon-year (y- o-y) to RM43.76 million from RM38.64 million generated in 3QFY16.
For nine months of financial year 2017 (9MFY17) ended October 2016, Quality Concrete noted the group’s revenue decreased by 12.5 per cent y- o-y to RM98.9 million from RM113 million.
The company in its accounts notes explained that the lower revenue for 9MFY17 was due to lower revenue generated by its manufacturing division which recorded RM80.5 million as compared to RM91.5 million recorded in the corresponding period.
It added the drop was due to demands for building products which were slow as the property or building materials market is currently experiencing a slowdown.
At the same time, Quality Concrete noted the demand for timber products from overseas market also continued to lag in the quarter ended October 2016.
Besides that, Quality Concrete observed that the group’s construction and development division has also seen its revenue dipped by 12 per cent or RM2.5 million in tandem with the completion of project in hand.
It revealed that the division did not secured any new project during the quarter ended October 2016.
On a quarter- on- quarter (q- o- q) basis, Quality Concrete noted the group recorded higher revenue as compared to the preceding quarter ended July 2016.
It observed the group posted a revenue of RM43.8 million which was RM17.7 million higher than the quarter ended July 2016 of RM26.05 million.
On a quarterly basis, Quality Concrete said its construction and development division has recorded an increase in revenue of RM16.0 million due to revenue recognition from a development project during the quarter ended October 2016.
Apart from that, the company said its manufacturing division saw its revenue increased by RM1.7 million or 6.6 per cent in 3QFY17 as compared to 2QFY17 partly contributed by the supply of ready mixed concrete to affordable housing project, PR1MA.
Commenting on the group’s prospects, Quality Concrete said, “The management is mindful of the challenges ahead and is taking measures to improve the performance of the group and ensure better efficiency.
“We are cautiously optimistic that with the commencing of the PR1MA housing projects and Pan Borneo Highway project in Sarawak, the group would be able to achieve a better result in the coming quarters,” the company said.