3 days ago
- Business
- New Straits Times
Ge-Shen's earnings surge 58pct, revenue eases in Q1
KUALA LUMPUR: Contract manufacturer Ge-Shen Corporation Bhd posted a 58 per cent jump in net profit to RM5.28 million for the first quarter ended March 31, 2025 (Q1FY25), from RM3.34 million a year ago.
The higher profit was driven by strong cost control, better production efficiency, a more focused product and customer base, and gains from the sale of a vacant land in Johor.
However, its revenue fell 26.2 per cent to RM54.49 million from RM73.85 million in Q1FY24, mainly due to the impact of US tariffs.
Quarter-on-quarter, Ge-Shen's net profit rose sharply from RM3.07 million in the fourth quarter of 2024 to RM5.14 million in Q1FY25, according to the company's filing with Bursa Malaysia.
Its revenue dropped 6.4 per cent from RM58.23 million, affected by currency fluctuations and festive season delivery delays.
Ge-Shen chief executive officer Dr Adrian Foong Hong Nian said it is taking a cautious approach to spending and expansion amid ongoing tariff uncertainties.
"The latest US tariff changes in April 2025 have had minimal impact thanks to our diverse supply chain and risk control efforts.
"Our stronger profit came from better cost management. We cut material costs, adjusted workforce levels, and controlled other expenses," he said.
Recently, Ge-Shen increased its stake in Kibaru Manufacturing Sdn Bhd to 72 per cent, highlighting its push into the medical device sector.
Kibaru specialises in rubber compression and liquid silicone rubber moulding.
Over 60 per cent of Kibaru's revenue comes from the medical sector, aligning well with Ge-Shen's growth plans.
The company remains positive about its growth outlook, despite concerns over global trade and potential wage hikes in Malaysia and Vietnam.
Ge-Shen is aiming for double-digit annual revenue growth by focusing on high-value sectors like medical, industrial, consumer, artificial intelligence, and data centres.
"With more automation, better use of enterprise software, and strategic asset sales, Ge-Shen is on track to maintain growth in 2025," it said.
