Sedania records all-time-high net profit since IPO

Sedania records all-time-high net profit since IPO
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KUALA LUMPUR (May 31): Sedania Innovator Bhd recorded an all-time-high net profit of RM4.21 million for the first quarter ended March 31, 2021 (1QFY21) since its initial public offering (IPO) in 2015.

The ACE Market-listed company also returned to the black from a RM1.82 million net loss in 1QFY20.

The company said the improved performance in 1QFY21 was mainly due to positive contributions from the GreenTech and HealthTech segments.

In a filing today, Sedania stated that its group revenue for 1QFY21 was RM17.07 million, which was more than a six-time increase from RM2.78 million in 1QFY20.

According to the filing, the GreenTech segment recorded a revenue of RM10.16 million or 59.52% of total revenue, compared with RM1.08 million in 1QFY20.

This was primarily as a result of contributions from the GreenTech segment as well as the newly acquired HealthTech subsidiary during the quarter, it said.

Meanwhile, the HealthTech segment's revenue was RM5.34 million or 31.27% of the total revenue while that segment contributed an operating profit before tax of RM1.54 million, representing 30.36% of the group's total operating profit before tax. However, with the inclusion of the HealthTech segment, the group's operating expenses increased by RM1.07 million or 31% compared qith in 1QFY20.

According to Sedania, the strong rebound in 1QFY21 was the result of the group's strategic initiative to find new business opportunities amid challenging pandemic conditions.

"Sedania has completed the acquisition of Offspring Inc Sdn Bhd with a 51% stake in January 2021.

"The Offspring Inc investment has proven to be a positive strategic move. The HealthTech segment has contributed to approximately 32% of the group's total revenue during the quarter," said managing director of Sedania, Datuk Azrin Mohd Noor, in a statement today.

Moving forward, the group said in its filing with Bursa that it is confident in maintaining a steady growth momentum with the inclusion of the HealthTech segment, which is expected to supplement the existing businesses and mitigate risks of relying on current ongoing businesses.

As at the time of writing, Sedania share were down five sen or 3.42% to RM1.41, giving it a market capitalisation of RM523 million.

Joyce Goh