KUALA LUMPUR (Aug 25): Piping expert Wah Seong Corp Bhd saw its net profit achieve a ninefold increase to RM17.44 million in the second quarter ended June 30, 2022 (2QFY22) from RM1.97 million a year earlier on the back of higher revenue.

Quarterly revenue surged 119% to RM737.06 million from RM336.855 million, the group's bourse filing showed.

Wah Seong said revenue for its energy segment rose to RM510.2 million from RM164.1 million in 2QFY21, while profit before tax (PBT) grew 10 times to RM77.4 million from RM7.9 million amid increasing activity in the market and commencement of work from a strong order book.

The renewable energy segment’s revenue increased to RM117.2 million from RM65.4 million while PBT jumped to RM13.4 million from RM7.1 million driven by a higher number of projects executed by the industrial engineering unit and better profit margins from the after-sales services by the agro-based industrial unit.

Revenue for the industrial trading and services segment increased to RM75.3 million from RM65.4 million. PBT soared to RM6 million from RM900,000 on higher sales in heavy equipment and engine business, recognition of gain on disposal of an associated company as well as disposal of assets held for sales.

For the six months ended June 30, Wah Seong’ cumulative net profit surged 112% to RM22.38 million from RM10.54 million a year earlier, as cumulative revenue climbed 78.41% to RM1.2 billion from RM670.3 million.

Looking ahead, Wah Seong remains cautious on its outlook given the current macro-economic situation which impacted the supply chain, project financing and cost escalation of essential materials.

“Wherever possible, the group will address these issues within its contracting arrangements to mitigate the risk,” said the group.

Wah Seong shares rose one sen or 1.61% to finish at 63 sen on Thursday, valuing the group at  RM488.18 million.