PETALING JAYA: A better second half is anticipated for Dancomech Holdings Bhd
going by its encouraging revenue growth and gross profit margin improvement in the first half of financial year 2023 (1H23).
The company, which distributes process control equipment (PCE) and measurement instruments reported a core net profit of RM9.5mil in the 1H23.
According to CGS-CIMB Research the results were in line with expectations as the first half of the year tend to be seasonally weaker, accounting for 31%-46% of full-year core net profit since the company’s listing in 2016. For the second quarter of financial year 2023 (2Q23), core net profit rose 39.7% year-on-year to RM5.2mil. Gross margin, meanwhile, improved to 21.8% from 20.1% in 2Q22.
“We expect Dancomech’s quarterly earnings to continue to pick up in the remaining quarters of FY23, mainly driven by its trading and electrical and electronic engineering segments, as it should benefit from higher construction activities and seasonal factors closer to the end of 2023, in our view,” it said in a note to clients.
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