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The Sun
24-07-2025
- Automotive
- The Sun
Betamak delivers strong growth in Q1 profit after tax
PETALING JAYA: Betamek Bhd, an original design manufacturer and a player in electronics manufacturing services for the automotive industry, posted strong profit after tax growth to RM5.4 million for the first quarter ended June 30, 2025 (Q1'26) compared to RM4.9 million in the preceding year's corresponding quarter (Q1'25). The company reported revenue of RM56.9 million for the quarter, marking a 13.8% increase compared to RM50 million in Q1'25. The growth was mainly attributable to higher sales of vehicle accessories and the initial contributions from industrial instruments and consumer electronics, reflecting early success from Betamek's diversification strategy. Profit before tax rose to RM7.2 million, up 12.1% from the same period last year. The group's gross profit margin expanded to 18.4%, compared to 17.2% previously, supported by stronger cost management and favourable currency movements. The vehicle audio and visual products segment continued to be the primary revenue contributor, accounting for RM38.9 million, or 68.4% of total revenue. The vehicle accessories segment contributed RM11.3 million, while the non-automotive products segment accounted for RM6.6 million. The Malaysian market remained the group's key focus, contributing 97.2% of total revenue, with the balance derived from Hong Kong and Japan. Compared to the immediate preceding quarter (Q4'25), revenue declined marginally by 4.8% from RM59.7 million, mainly due to reduced working days during festive periods. Despite the seasonal impact, the group maintained a strong profit before tax margin of 12.6%, slightly higher than the 12.1% recorded in the previous quarter, reflecting continued operational efficiency. However, the gross profit margin improved by 0.81% due to favourable currency movement in US dollar and China's yuan in the current quarter. Betamek's board has declared a first interim single-tier dividend of one sen per share for the financial year ending March 31, 2026. The ex-date for the dividend is Aug 6, with payment scheduled for Aug 20. Executive director Muhammad Fauzi Abd Ghani said, 'We're pleased to begin the financial year on solid footing, driven by ongoing progress in our diversification strategy and operational improvements, particularly at Sanshin Malaysia. This performance reflects our ability to adapt and grow sustainably even as the market normalises following a record year. We remain focused on strengthening our customer base, investing in automation, and developing innovative product solutions across both automotive and non-automotive sectors.'
The Sun
24-07-2025
- Automotive
- The Sun
Betamek delivers strong growth in Q1 profit after tax
PETALING JAYA: Betamek Bhd, an original design manufacturer and a player in electronics manufacturing services for the automotive industry, posted strong profit after tax growth to RM5.4 million for the first quarter ended June 30, 2025 (Q1'26) compared to RM4.9 million in the preceding year's corresponding quarter (Q1'25). The company reported revenue of RM56.9 million for the quarter, marking a 13.8% increase compared to RM50 million in Q1'25. The growth was mainly attributable to higher sales of vehicle accessories and the initial contributions from industrial instruments and consumer electronics, reflecting early success from Betamek's diversification strategy. Profit before tax rose to RM7.2 million, up 12.1% from the same period last year. The group's gross profit margin expanded to 18.4%, compared to 17.2% previously, supported by stronger cost management and favourable currency movements. The vehicle audio and visual products segment continued to be the primary revenue contributor, accounting for RM38.9 million, or 68.4% of total revenue. The vehicle accessories segment contributed RM11.3 million, while the non-automotive products segment accounted for RM6.6 million. The Malaysian market remained the group's key focus, contributing 97.2% of total revenue, with the balance derived from Hong Kong and Japan. Compared to the immediate preceding quarter (Q4'25), revenue declined marginally by 4.8% from RM59.7 million, mainly due to reduced working days during festive periods. Despite the seasonal impact, the group maintained a strong profit before tax margin of 12.6%, slightly higher than the 12.1% recorded in the previous quarter, reflecting continued operational efficiency. However, the gross profit margin improved by 0.81% due to favourable currency movement in US dollar and China's yuan in the current quarter. Betamek's board has declared a first interim single-tier dividend of one sen per share for the financial year ending March 31, 2026. The ex-date for the dividend is Aug 6, with payment scheduled for Aug 20. Executive director Muhammad Fauzi Abd Ghani said, 'We're pleased to begin the financial year on solid footing, driven by ongoing progress in our diversification strategy and operational improvements, particularly at Sanshin Malaysia. This performance reflects our ability to adapt and grow sustainably even as the market normalises following a record year. We remain focused on strengthening our customer base, investing in automation, and developing innovative product solutions across both automotive and non-automotive sectors.'
The Sun
21-07-2025
- Business
- The Sun
Southern Cable in line to win MRT3 deals: Apex Securities
KUALA LUMPUR: Southern Cable Group Bhd is well-positioned to secure a substantial share of the MRT3 cable supply package, building on its strong track record in MRT2, comprehensive product range, and established market leadership. In a recent report, Apex Securities Bhd estimated that, assuming a cable supply package valued at RM600 million, with 60% market share and a blended gross profit margin of 15%, Southern Cable could generate RM54 million in gross profit from MRT3—equivalent to 25% of the research firm's FY25 forecast. 'This would provide a meaningful uplift to earnings visibility over the medium term,' Apex said. The MRT3 project has received final approval from the Transport Ministry, enabling the land acquisition process to begin. The project is targeted for completion by end-2026. The MRT3 Circle Line will span 51km, comprising 31 stations. Construction is scheduled to begin in 2027, with full operations expected by 2032. In rail infrastructure projects, cable supply contracts are usually split across several key work packages including power supply systems, signalling and control systems, track works, and station components. As a reference point, MRT2, which spans 52.2km with 36 stations, has a total project cost of RM56.9 billion. Cable supply contracts for MRT2 were estimated at around RM550 million, according to market sources. 'Given the comparable scale of MRT3, we estimate the cable supply package to be valued at RM600 million,' Apex added. In light of MRT3 and other infrastructure rollouts such as the Penang LRT, Apex Securities has revised its earnings forecasts upward by 9.5% for FY26 and 18.5% for FY27. The research firm noted that cable orders for large infrastructure projects are typically distributed across multiple packages and subcontractors. This results in staggered purchase orders, rather than a single lump-sum entry in Southern Cable's order book. 'We raise our price-earnings (PE) multiple from 15x to 17x to reflect Southern Cable's improving earnings visibility and robust growth outlook. 'Valuation remains attractive, with a price/earnings-to-growth (PEG) ratio of 0.4x, based on our projected EPS compound annual growth rate (CAGR) of 33.9% for FY24–27. 'Our revised target price of RM2.14, up from RM1.72, is based on a 17x FY26 EPS of 12.6 sen, and supported by a three-star ESG rating. 'We maintain a 'Buy' call on Southern Cable. We remain positive on the company, given its position as a proxy for Malaysia's rising power demand, growing need for high-voltage power cables, and export exposure to the US market,' Apex Securities concluded.
