MASTER TEC GROUP BERHAD MAINTAINS GROWTH MOMENTUM AND ACHIEVES HIGHER PROFIT AFTER TAX
• Better product mix drives profitability on robust demand for wires and cables;
• Achieved individual 3Q FYE2023 and cumulative 9M FYE2023 profit after tax of RM5.8 million and RM19.4 million respectively.
Melaka, Malaysia, 24 January 2024 – Wires and cables manufacturer, Master Tec Group Berhad (“Master Tec” or “Group”; Stock Name: MTEC and Stock Code: 0295), recorded a profit after tax (PAT) of RM5.775 million in the individual third quarter ended 30 September 2023 (3Q FYE2023) and a PAT of RM19.407 million for the cumulative 9 month financial period ended 30 September 2023 (9M FYE2023). This was mainly driven by better product mix and higher profit contribution from the sales of aluminium- cored wires and cables. The enhanced profitability has led to improved PAT margins with the Group having achieved a PAT margin of 8.86% in 3Q FYE2023 and a PAT margin of 9.55% in 9M FYE2023.
Currently, Master Tec has an accumulated production capacity to produce up to 9,500 tonnes of wires and cables annually, which consists of the annual capacity to produce up to 4,000 tonnes of copper-cored wires and cables and up to 5,500 tonnes of aluminium-cored wires and cables.
Dato’ Lau Kim San, Managing Director of Master Tec commented,
“We are optimistic about our prospects, driven by robust demand for wires and cables from various sectors. Besides power utility companies that are involved in power transmission and distribution such as Tenaga Nasional Berhad, Sarawak Energy Berhad and Sabah Electricity Sdn Bhd, we also anticipate to receive stronger demand from industries such as construction, oil and gas, electric vehicle and energy intensive data centres in the future.
Our PAT of RM19.407 million in 9M FYE2023 has almost matched the PAT of RM19.555 million for the full financial year ended 31 December 2022. In order to maintain our growth momentum, we will continue to look into undertaking expansion plans to seize more business opportunities following the recovery of the domestic economy.
In 2024, we plan to construct two new manufacturing plants in Alor Gajah, Melaka and to purchase new machineries and equipment to venture into the manufacturing of medium voltage power cables. This expansion will enable the Group to market its new products to mostly capital-intensive manufacturing industries that demand higher voltage of electricity power transmission, such as automotive plants, semiconductor fabrication plants, chemical plants and electric vehicle charging station facilities.
Our expanded production capacity will allow us to meet increasing market demand and to fulfil larger orders from various market segments. We are well-equipped to seize the opportunity from various new infrastructure projects and multiple renewable energy projects that will be rolled-out under the National Energy Transition Roadmap. In the long run, the progressive establishment of new manufacturing facilities under the New Industrial Master Plan 2030 is also expected to boost the demand for various types of power cables, control and instrumentation cables and solar direct current power cables
which are produced by Master Tec.”
Following the conclusion of public balloting on 22 January 2024, Master Tec received an overwhelming response for the public tranche of its Initial Public Offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities), with its public portion oversubscribed by 7.11 times.
Master Tec received a total of 7,276 applications for 413.647 million IPO Shares with a total value of RM161.322 million. The public tranche entails a total of 51.0 million IPO shares made available for application by the Malaysian public under the Group’s
IPO scheme.
Dato’ Lau Kim San, Managing Director of Master Tec added,
“The oversubscription from the Malaysian public indicates the strong interest in our Group and is a vote of confidence to our business model and prospects as a proxy to the wires and cables manufacturing industry in our country. We intend to use the proceeds from the IPO to better position our Group to grow alongside the rolling out of various infrastructure projects and setting up of two new manufacturing plants in Melaka.
It is our desire to reward shareholders for supporting us. We will adopt a dividend policy to distribute 30% of our annual audited PAT as dividends, subject to business performance and cash flow requirements of the Group every year.”
The listing of Master Tec on the ACE Market of Bursa Securities is set on 29 January 2024. Based on the enlarged share capital of 1.02 billion ordinary shares and issue price of RM0.39 per IPO Share, Master Tec is expected to have an indicative market capitalisation of RM397.8 million.
From the proceeds of RM61.659 million raised from the IPO exercise, Master Tec plans to utilise RM16.783 million (27.22%) to construct two new medium voltage power cable manufacturing plants in Melaka, RM24.387 million (39.55%) to purchase new machineries and equipment, RM16.289 million (26.42%) for general working capital and RM4.200 million (6.81%) to pay off listing expenses.
SJ Securities Sdn Bhd is Master Tec’s Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent for the Group’s IPO and listing on the ACE Market of Bursa Securities.
INFORMATION ON MASTER TEC GROUP BERHAD
Founded in 2005, Master Tec manufactures and distributes a wide range of low- voltage power cables, control and instrumentation cables and larger sizes of solar direct current power cables. The Group is also involved in the trading and distribution of a wide range of medium voltage power cables, fibre optic cables and smaller sizes of solar direct current power cables.
All three well-equipped manufacturing plants are located in Alor Gajah, Melaka, Malaysia. The Group has an accumulated production capacity to produce up to 9,500 tonnes of wires and cables annually. The Group has the capacity to produce up to 4,000 tonnes of copper-cored wires and cables and up to 5,500 tonnes of aluminium- cored wires and cables per year.
The Group’s quality, safe and high-performance wires and cables are utilised in diverse sectors including power utilities, renewable energy, property development and construction, oil and gas, infrastructures, public transportation, manufacturing, industrial, electrical and electronics and telecommunications.
Issued by: Maxamis Consultancy Services on behalf of Master Tec Group Berhad
For further media enquiries, kindly contact:
Mr Tan Yap Seng
Appointed Investor Relations and Media Relations Consultant
Telephone Number: +6016 – 328 1828
Or
Mr Tee Kok Hwa
Chief Executive Officer
Master Tec Group Berhad
Email: khtee@mastertec.my
Telephone Number: +606 – 316 1111 Ext: 120
Company Address:
RM 1299-A, Kawasan Perindustrian Rembia 78000 Alor Gajah, Melaka, Malaysia.