Siab Holdings Berhad (“Siab” or the “Company”), a prominent player in Malaysia’s construction sector, has announced its financial results for the second quarter ended 30 June 2024 (“Q2 FY2024”), marking its second consecutive quarter of profitability. The Company reported a gross profit of RM2.55 million, a significant turnaround from the gross loss of RM3.04 million in the same quarter of the previous year (“Q2 FY2023”).
Siab recorded a revenue of RM38.26 million for Q2 FY2024, down from RM67.36 million in Q2 FY2023, primarily due to fewer ongoing projects compared to the same period last year. However, when compared to the first quarter of FY2024, which saw revenue of RM26.26 million, the second quarter reflected a robust 45.7% increase. This growth was driven mainly by heightened construction activities in ongoing projects, including the recently secured RM94.28 million construction of a processing factory for Mahsuri Food Sdn. Bhd. and a RM106.80 million residential project for Murni Lapisan Sdn. Bhd., a subsidiary of IJM Land Berhad.
Despite the revenue growth, Siab maintained a stable profit before tax (PBT) of RM0.11 million, consistent with the PBT recorded in Q1 FY2024. This steady performance highlights the Company’s successful focus on cost management and operational efficiency.
Mr. Ng Wai Hoe, Group Managing Director of Siab Holdings Berhad, expressed optimism about the company’s performance, stating, “Maintaining profitability for the second quarter in a row is a significant achievement for us. The acquisition of Taghill Projects Sdn. Bhd. has strengthened our project portfolio, allowing us to enhance our market position. With the addition of experienced leaders to our board, we are confident in our future prospects. We remain cautious as we navigate the current market, focusing on delivering value to our stakeholders.”
Earlier this year, Siab completed a rights issue exercise, raising over RM92.00 million to support the acquisition of Taghill, a construction project and contract management consultancy firm. As of 30 June 2024, Siab’s order book stood at RM1.48 billion, with Taghill committed to a profit guarantee of at least RM24.00 million for the financial years 2024 and 2025 combined.
Additionally, Siab’s Board of Directors has proposed renaming the Company to Taghill Holdings Berhad, reflecting its strategic integration with Taghill Projects Sdn. Bhd. This name change will be subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled for 18 September 2024.
Malaysia’s construction industry saw a 6.3% increase, growing from RM53.44 billion in 2022 to RM56.69 billion in 2023, and is expected to rise by 6.8% to RM60.49 billion in 2024. This growth is supported by the record development expenditure of RM99.0 billion outlined in the 2nd Belanjawan MADANI, which is anticipated to drive significant expansion across all industry subsectors. The government’s continued focus on home ownership, with allocations totaling RM2.47 billion for housing projects, also presents substantial opportunities for Siab. With a stronger board and enhanced capabilities, Siab is well-positioned to deliver long-term value to its stakeholders in this expanding market.