APB Resources Berhad, a major fabricator of design engineering equipment, released financial results for the fourth quarter of fiscal year 2024 (4QFY2024) today.
The Board of Directors has authorized a modification in the Company’s fiscal year end date from 30 September 2023 to 31 March 2024. The next fiscal year will last 18 months, from 1 October 2022 to 31 March 2024. Subsequent fiscal years will finish on March 31st, giving newly appointed Directors in June 2023 enough time to obtain a deeper grasp of corporate activities.
Despite volatile market conditions, APB maintained a stable revenue position of RM18.9 million for 4QFY2024. While this represents a 5.1% year-on-year (YoY) decrease from RM20.0 million, it demonstrates the Group’s capacity to maintain company operations in the face of changing market demands. A strategic adjustment in the Group’s product mix occurred during this time, resulting in a gross profit margin of 33.9%, compared to 37.1% in 4QFY2022.
For the quarter, the Group’s profit after tax was RM2.3 million. This result, albeit small in comparison to RM4.8 million in 4QFY2022, is mostly due to conservative financial adjustments, such as the net reversal of impairment losses on trade receivable and liquidated and determined damages from the previous year. Notably, APB demonstrated operational resilience on a quarter-on-quarter (QoQ) basis, increasing profit after tax from RM2.0 million in the previous quarter to RM2.3 million in 4QFY2024. This gain can be ascribed to a higher gross profit margin, which has been boosted by a more favorable product mix.
“Our strategic efforts are now more important than ever,” said APB’s executive team. We are energized and well-prepared to handle the developing market scenario, thanks to the acquisition of Datuk Koon Poh Tat as a key stakeholder in June 2023 and the subsequent nominations of new members to our Board of Directors. We are set to harness our significant knowledge in the fabrication of process equipment to fulfill this rising demand and drive our next phase of expansion as we observe a steady upswing in demand within our main markets. These latest changes in our leadership structure demonstrate our dedication to strategic growth and operational excellence.”
To summarize, APB is bullish about the future, particularly in the fabrication industry. With the industry exhibiting signs of increased capital investment, particularly in areas where APB has built expertise, such as the oleo-chemical, oil and gas, energy, and petrochemical sectors, the Group is well-positioned to benefit on these new possibilities.
APB’s share price is RM2.41 as of 30 November 2023, reflecting a market capitalization of RM272.0 million.