Kuala Lumpur, Feb 23: In a dynamic marketplace, APB Resources Berhad (“APB”) and Yew Lee Pacific Group Berhad (“Yew Lee”) have unveiled their respective financial performances, showcasing resilience amidst industry shifts.
APB reported a revenue of RM20.5 million for the latest quarter, marking an 8.1 per cent increase, propelled by strategic acquisitions and diversification efforts, particularly the acquisition of Globetronics Technology Bhd.
Meanwhile, Yew Lee navigated market fluctuations with adept management of its manufacturing and trading segments.
Despite challenges in the trading sector, Yew Lee’s manufacturing arm demonstrated strength, contributing RM3.6 million to the quarter’s revenue.
Both companies remain focused on strategic initiatives to fortify their market positions and capitalize on emerging opportunities, underscoring their readiness to adapt to evolving market dynamics and drive sustained growth.
APB’s Strategic Expansion: Highlights
Shah Alam, Feb 23: APB Resources Berhad (“APB” or the “Group”), a prominent provider of design engineering equipment, today unveiled strategic updates and financial results for the fifteen-month period concluding on 31 December 2023.
Aligning with its long-term growth vision, the Board of Directors of APB has sanctioned an extension of the current financial year, shifting the year-end from 30 September to 31 March.
This alteration encompasses audited financial statements for an 18-month span from 1 October 2022 to 31 March 2024, setting subsequent financial year-ends to 31 March annually.
In a decisive move towards diversification and expansion, APB finalized a Share Sale Agreement (“SSA”) on 18 December 2023, acquiring 10.41 per cent equity interest in Globetronics Technology Bhd (“Globetronics”).
The acquisition, supported by shareholders at the Extraordinary General Meeting (“EGM”) on 6 February 2024 and concluded on 16 February 2024, marks APB’s strategic foray into the semiconductor and electronic components manufacturing sector.
During the quarter ended 31 December 2023, APB reported a revenue of RM20.5 million, signifying an 8.1 per cent increase from the preceding quarter.
This growth underscores the Group’s resilient operational capabilities amidst strategic transformations. Despite adjustments in product mix affecting gross profit margins and professional fees linked to recent acquisitions, APB achieved a profit after tax of RM0.6 million, indicating a period of strategic investment and realignment to propel the Group towards future growth stages.
The management team at APB emphasized the significance of these strategic initiatives, particularly the acquisition of Globetronics, in fostering diversification and long-term growth.
They acknowledged the temporary adjustment in profit after tax, attributing it primarily to acquisition-related expenditures, while affirming their commitment to leveraging these initiatives to fortify APB’s position in the semiconductor industry and deliver enduring value to stakeholders.
APB expresses optimism about future prospects, not only within its core fabrication sector but also in the burgeoning semiconductor space. With renewed capital investments in sectors where APB holds expertise, combined with the strategic acquisition of Globetronics, the Group is poised to capitalize on emerging opportunities.
This dual focus underscores APB’s readiness to leverage established strengths while embracing new growth avenues.
Yew Lee’s 4QFY2023 Holds Steady Amid Market Shifts
Kuala Lumpur, Feb 23: Yew Lee Pacific Group Berhad (“Yew Lee” or the “Group”), a key player in industrial brushes manufacturing and trading of industrial hardware and machinery parts, disclosed its financial results for the fourth quarter ending on 31 December 2023 (“4Q FY2023”).
In 4Q FY2023, Yew Lee demonstrated adept management across its two business segments.
The manufacturing wing exhibited robust performance, contributing RM3.6 million to the quarter’s revenue, a growth from RM3.3 million in 4Q FY2022. This resilience underscores the manufacturing arm’s consistency despite challenges in the glove industry.
Conversely, the trading segment encountered fluctuations due to market competition and price wars. Yew Lee responded by streamlining operations within this segment, focusing on consolidation to enhance cost efficiency.
These measures align with the company’s strategy to optimize profitability. Overall, Yew Lee reported revenue of RM4.9 million for 4Q FY2023, a slight dip from RM5.3 million in the same period last year, attributed to variances in sales orders across markets.
The quarter also witnessed a marginal uptick in loss after tax, reaching RM1.4 million, up from RM1.1 million in 4Q FY2022. This shift reflects market conditions and strategic investments, including expenses associated with establishing a new subsidiary in Thailand.
Quarter-on-quarter, Yew Lee’s revenue decreased to RM4.9 million in 4Q FY2023 from RM5.6 million in the previous quarter, while the loss after tax widened from RM0.1 million to RM1.4 million.
These adjustments mirror the impact of reduced sales orders and operational realignments during the period.
Managing Director of Yew Lee, Ang Lee Leong, emphasized the influence of industry trends on performance, particularly in the rubber glove sector, a significant revenue contributor.
He expressed optimism regarding the sector’s rebound driven by global hygiene awareness and increasing glove usage.
Ang Lee Leong added, “To diversify and mitigate industry risks, Yew Lee is expanding its industrial brush range, offering customizable options to meet market demands and bolstering its presence locally and internationally. Additionally, the Group is exploring opportunities in sectors like semiconductors, timber, glass, and agriculture to reduce dependency on the rubber glove industry, ensuring a more balanced and resilient business model.”
As of 23 February 2024, Yew Lee’s share price stands at RM0.39, with a market capitalization of RM208 million.
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