Kuala Lumpur, May 29: Several notable Malaysian companies have recently unveiled their financial performance and project achievements.
Leon Fuat Berhad, a prominent manufacturer, and trader specializing in rolled steel products, reported a decline in revenue and profit in the first quarter of 2023.
In contrast, Radium Development Berhad, a leading property developer, showcased strong financial results for the fiscal year 2022.
Furthermore, the China Communications Construction (ECRL) Sdn Bhd-led East Coast Rail Link (ECRL) project celebrated the recognition of exceptional vendors. Let’s delve into the financial highlights of these companies and the progress of the ECRL project.
Leon Fuat Berhad announced a 14.4 percent decrease in revenue for the first quarter ending March 31, 2023. With revenue amounting to RM233.70 million, the figure fell short of the RM273.02 million achieved during the corresponding quarter of the previous financial year.
The company’s profit before tax (PBT) experienced a significant decline of 59.5 percent, settling at RM12.87 million in Q1FY2023 compared to RM31.81 million in Q1FY2022. Similarly, the profit after tax (PAT) witnessed a 55.3 percent dip, decreasing to RM10.68 million from RM23.89 million in the same period last year.
Factors contributing to this challenging situation include high costs, a weak ringgit, and slower growth momentum in the domestic economy.
Despite these obstacles, Leon Fuat Berhad remains cautiously optimistic about the future, with plans to seek new customers among small-medium enterprises to achieve positive results in the upcoming quarters.
In sharp contrast, Radium Development Berhad, a renowned Kuala Lumpur-centric property developer, unveiled outstanding financial results for the fiscal year 2022.
The company reported a profit before tax (PBT) of RM147.26 million and a profit after tax (PAT) of RM101.44 million, showcasing remarkable resilience.
Although the revenue for FYE2022 decreased to RM336.41 million compared to the previous year’s RM563.69 million, this was primarily due to the completion of Radium’s projects in FYE2021, such as the Residensi Semarak Platinum project.
Higher revenue recognition from the Residensi Platinum OUG project and Residensi PV9 project in FYE2021 contributed to the variance. Radium Group’s solid financial position was underlined by a gross gearing ratio of 0.26 times and a net cash position of RM105.00 million.
These robust figures enabled the company to maintain healthy cash and cash equivalents positions, setting the stage for its listing on the Main Market of Bursa Securities Malaysia Berhad on May 31, 2023.
In other news, China Communications Construction (ECRL) Sdn Bhd, the Engineering, Procurement, Construction, and Commissioning (EPCC) Contractor of the East Coast Rail Link (ECRL) Project, recently honored 23 vendors, including consultants, suppliers, and subcontractors, with the Award of Excellence 2022.
The accolade acknowledges the remarkable capabilities and performance of local construction industry players in areas such as Health, Safety, and Environment (HSE) Management, Quality Management, Progress Management, and Resource Allocation.
The ECRL project, spanning Kelantan, Terengganu, Pahang, and Selangor, has made significant strides, achieving an overall progress rate of 43 percent as of May 2023.
The recognition of exceptional vendors highlights the collaborative efforts driving the project’s success and the pivotal role played by these industry partners.
As Malaysian companies navigate through diverse financial landscapes, the performance of Leon Fuat Berhad, Radium Development Berhad, and the ECRL project presents a contrasting picture.
While Leon Fuat Berhad grapples with revenue and profit decline, Radium Development Berhad shines with resilient financial achievements.
Meanwhile, the ECRL project continues its steady progress, leveraging the expertise of outstanding vendors. The outcomes of these entities will be closely monitored as they shape Malaysia’s economic trajectory in the coming quarters.
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