KUALA LUMPUR, Feb 26 — Kumpulan Perangsang Selangor Bhd (KPS) reported RM1.1 billion revenue for its fiscal year 2020, setting a new financial milestone by surpassing the RM1 billion revenue mark for the group performance.
KPS said the revenue for the fourth quarter ended December 31, 2020, which surged to RM318.6 million from RM297.2 million a year earlier, shows the group success in balancing the tactical decisions needed to build operational and financial resilience while staying focused on its long-term strategic goals.
It said KPS’ manufacturing business, which is represented by Toyoplas Manufacturing (M) Sdn Bhd, Century Bond Bhd, CPI (Penang) Sdn Bhd and King Koil Manufacturing West LLC, recorded 14 per cent revenue growth year-on-year, contributing RM273.2 million, or 86 per cent, to the group’s revenue compared to RM239.5 million in the corresponding quarter last year.
Furthermore, the infrastructure business, which is represented by Smartpipe Technology Sdn Bhd and KPS-HCM Sdn Bhd, has been a laggard in revenue contribution to the group.
During the quarter under review, Smartpipe contributed merely RM0.7 million, with sales derived from the on-site works for Package 12 of the Pipe Replacement Project for Air Selangor.
“There was no revenue contribution from KPS-HCM for the quarter due to the absence of new projects,” KPS said in a statement.
It said the remaining revenue contribution of RM2.3 million was from investment holding and property investment, mainly from net rental income at Summit Hotel KL City Centre.
Managing director and group chief executive officer Ahmad Fariz Hassan said logistical challenges are expected to moderate, given a positive outlook for the container shipping markets moving into 2021.
“The staggered availability of Covid-19 vaccines is also expected to support the progress of the global economic revival, with many industries already adjusting to the new normal and planning for business recovery.
“Therefore, we expect to ride along this recovery phase in the near term with further improvement in our operational efficiency,” he said.
On prospects, Ahmad Fariz said the focus will be on recovery, strategising on how the company can thrive on new possibilities to ensure that the group continues to strengthen its prospect and as a result, its earnings visibility.