Wong Engineering posts 7-fold increase in net profit

PETALING JAYA: High precision component parts manufacturer Wong Engineering Corp Bhd has registered more than seven-fold increase in net profit to RM6.11mil for the financial year ended Oct 31, 2017 (FY17) compared with the previous financial year.

The group recorded a net profit of RM2.5mil for the fourth quarter as compared with a net loss of RM130,000 in the previous corresponding quarter.

In a filing with Bursa Malaysia yesterday, Wong Engineering said domestic demand from customers in the electrical and electronic industry continued to fuel revenue growth, while profits are in line with expectations of an increase in raw material costs that are offset by internal cost control measures.

Revenue for the fourth quarter was up by 64% to RM12.78mil, while revenue for FY17 was higher by 29% to RM42.71mil compared with the previous corresponding period.

“The group expects an improvement in revenue and a competitive business environment in the com- ing year.

“The group will continue to diversify its revenue streams in various industries and consumer base, while implementing strategies to better control operating cost and cash flow,” said Wong Engineering.

In addition, the board of directors of Wong Engineering have recommended a first and final tax-exempt dividend of two sen per ordinary share for the financial period ended Oct 31, 2017, subject to shareholders’ approval.

Apart from that, on Oct 31, Wong Engineering received a letter of award to undertake a RM87.5mil contract from Havana Solaris Sdn Bhd to construct two blocks of 37-storey apartment affordable homes which amounts to 556 units, as well as a hawker centre with 31 units, on top of an eight-storey car park podium including facilities in Kuchai Lama Entrepreneurs Park, Kuala Lumpur.

The contract commenced from Nov 16, 2017 to May 15, 2020, and is expected to contribute positively to the group’s future earnings.