PETALING JAYA: Wong Engineering Corp Bhd sees a bright near-term outlook for its manufacturing segment, which is its primary revenue source as customer orders and input costs fluctuate.
The group, which manufactures high-precision components, said it would increase its capacity in the coming quarter due to better manpower resources and delivery of new sheet-metal machines.
In a filing with Bursa Malaysia, it said the increased capacity will enhance its ability to fulfill existing orders and provide the group with an opportunity to capture new markets and industries to diversify and grow its customer base.
“We remain highly mindful of foreign exchange risk due to the recent rapid reversal of US dollar appreciation against the ringgit and persistent constraints affecting material availability and lead times in the global supply chain, in addition to signs of a slowdown in demand from the technology sector. aware.” It said.
For the final quarter of the fiscal year ending October 31, 2022 (4Q22), Wong Engineering posted a 2% year-on-year (Y-O-Y) revenue growth of RM20.87mil on sales growth in the manufacturing segment as demand for metal fabricated components picked up registered an increase. Stay healthy
This offset the lower billing from the construction segment, where the group’s projects have been completed.
Net profit for the quarter under review rose 4.4% year-on-year to RM2.96mil.
“The increase in profit has been primarily supported by the manufacturing segment as a result of higher sales, favorable product mix, improving factory utilization as well as a stronger US dollar exchange rate in 4Q22,” it noted.