KUALA LUMPUR (Feb 21): Copper manufacturer Ta Win Holdings Bhd registered a net profit of RM4.66 million for the second quarter ended Dec 31, 2021 (2QFY22), against a net loss of RM1.5 million a year earlier.

Quarterly revenue climbed 39.03% to RM172.48 million from RM124.06 million, the group’s filing with the bourse on Monday (Feb 21) showed.

The improved performance was mainly driven by higher production and sales volume, with manufacturing operations resuming as Movement Control Order restrictions eased, enabling the group to fulfill its outstanding orders, and further supported by increasing copper price.

The group posted a profit before tax of RM6.36 million against a loss before tax of RM1.49 million in the prior year due to improvement of margin from increase of sales volume from the manufacturing segment.

On a quarter-on-quarter basis, Ta Win reversed a net loss of RM3.28 million in 1QFY22; revenue for 2Q surged 158% from RM66.82 million.

For the six months ended Dec 31, 2021 (6MFY21), Ta Win recorded a net profit of RM1.39 million versus a net loss of RM4.26 million in the prior year. 6MFY21 revenue rose 14.46% to RM239.3 million, from RM209.07 million before.

Ta Win’s group managing director Datuk Seri Ngu Tieng Ung said the company also recorded stronger margins from its subsidiaries, namely Cyprium Wire Technology Sdn Bhd (CWT) and Sin Line Tek Electronic Co Sdn Bhd (Sin Line Tek).

“This indeed reflects our strategic plans to expand further along the value chain into the downstream copper business, while continuing to build up our base business of the production of copper rods and wires, (which) is indeed bearing fruit,” he said in a separate statement.

With a more positive operating climate expected as Malaysia moves forward on the path to recovery, Ngu said the group will continue to scale up its business activities.

This includes increasing production in Ta Win’s facilities, while pursuing its capacity expansion plans in anticipation of stronger demand for the group’s copper products, as well as its power solution businesses, said Ngu.

“To this end, the construction of our new manufacturing facility in Pulau Indah, Klang, is on track for commercial trial run by mid-calendar year 2022. This will enable us to cater to growing demand for copper products over the long-term. CWT’s electron beam irradiation plant is also progressing well and we target to commence trial run by the fourth quarter of our current financial year (4QFY22), equipping the group with the capacity to produce irradiation cross-linked wire and cable products for the global electric vehicle supply chain.”

“Sin Line Tek is also enhancing capacity and increasing research and development efforts to offer new products for the electrical and electronic sectors, in addition to exploring opportunities to supply products for the automotive industry. Meanwhile, our associate company Royce Pharma, which specialises in manufacturing and supply of pharmaceutical products, as well as medical disposables, equipment and devices, has increased its production capacity to fulfil government hospital contracts and is seeking out more collaborative efforts with industry participants.”

“With a continued focus on our strategic plans, coupled with our ongoing efforts to streamline and enhance operational efficiency, we are confident that Ta Win is well-poised to maintain our positive trajectory, moving forward,” Ngu added.

At market close on Monday, Ta Win shares ended 2.7% or half a sen lower at 18 sen for a market capitalisation of RM598.36 million.  Its trading volume swelled to RM212.09 million, making it the second most active stock.