KPS posts 34% rise in net profit amid supply chain challenges

KPS posts 34% rise in net profit amid supply chain challenges

KUMPULAN Perangsang Selangor Bhd (KPS) reported its net profit had increased 34% to RM16.4 million for the quarter ended March 31, 2022 (1Q22), from RM12.2 million recorded in 2021.

The group also recorded a 7% revenue growth to RM329.2 million for 1Q22, as compared to RM308.4 million in the corresponding quarter last year. 

The manufacturing business recorded almost a flat growth, with revenue notching up 1% year-on-year, contributing RM271 million to the group, compared to RM267 million in the corresponding quarter last year. 

No revenue contribution was recorded this quarter from the infrastructure business, which is represented by KPS-HCM Sdn Bhd and Smartpipe Technology Sdn Bhd.

The remaining revenue contribution of RM2.2 million, or 1% was from investment holding and property investment, mainly from rental income from Plaza Perangsang and Wisma SAP. 

Revenue contribution from this business was slightly higher by RM100,000 this quarter.

“The challenges brought upon by the longer than expected supply chain headwinds had escalated resin and paper prices and sustained electronics chips and labour shortages, laying speed bumps on the global economic recovery and testing business resilience and sustainability, all of which have affected the performance of our manufacturing business in China, Indonesia and Malaysia,” KPS MD and CEO Ahmad Fariz Hassan (picture), said in a statement.

“Furthermore, given that the Zero-Covid policy is still effective in China, Toyoplas Group’s operations in Dongguan and Shanghai were affected by a temporary lockdown last March. 

“Combined, these challenges have held the brakes on the growth momentum, leading our manufacturing business to show just a slight increase in revenue,” he explained.

However, he said the group is pleased that its mattress manufacturing, water chemicals trading and licensing businesses provided the balance in cushioning the impact of the supply chain disruption on the other segments, showing stronger

performance and maintaining a relatively strong gross profit margin for the group quarter-on-quarter. — TMR