Por is optimistic that Mestron will see a strong and robust growth for this year as the faster rollout of 5G network would drive demand for its products.
KUALA LUMPUR: Mestron Holdings Bhd (Mestron) growth ahead is expected to be driven by Malaysia’s push for the rollout of 5G services across the country.
Por Teong Eng
In a press statement following the release of Mestron’s first quarter of the financial year 2021 (1QFY21) results, Mestron’s managing director Por Teong Eng commented: “A faster rollout of 5G network in Malaysia is a positive catalyst for the group as this would driven the demand for our specialty pole products as high mast and telecommunication monopole are necessary in the development of telecommunication infrastructures.”
He added, “We are optimistic that the group will see a strong and robust growth for this year as the faster rollout of 5G network would drive demand for our products. However, we remain cautious over the potential disruption from a potential lockdown in the country following the surge of Covid-19 cases recently. According to Por, the demand for specialty pole products of the group is already seen by the higher sales in the 1QFY2021 and would pickup further for the rest of this financial year.
On its performance for 1Q, Mestron reported a stronger financial performance 1QFY2021, led by higher sales of specialty poles, mainly for the telecommunication segment.
According to the filing with Bursa Malaysia, the group’s net profit for the 1QFY2021 jumped by 86.7 per cent y-o-y to RM1.5 million as compared to RM0.8 million recorded in the previous year’s corresponding quarter.
Mestron also recorded an increase of 4.5 per cent y-o-y in its revenue to RM11.6 million in the current quarter under review. The higher revenue was mainly driven by the sales of specialty poles mainly for the telecommunication segment.
The higher margin for the specialty poles as well as the better implementation of cost-control measures have led to strong double-digit growth in its net profit.
Por remarked: “The strong growth seen in the 1QFY2021 is in line with our expectations as we have seen an increase in the demand for our specialty poles, especially in the telecommunication segment. The cost-control measures that we have implemented following the Covid-19 pandemic in March 2020 has also helped us to improve the overall efficiency of the Group’s operations.”
Given that the Malaysian market remains as the largest market contributing to the group’s revenue accounting for about 93.3 per cent of the overall revenue, the strong growth for its specialty pole products in the country would help to accelerate growth for FY21.