KUALA LUMPUR: Sand Nisko Capital Bhd (SNC) revenue jumped by 86.57 per cent to RM12.5 million in the second quarter (Q2) financial year ended 30 June 2021 (FY21) from RM6.7 million same quarter last year.
Net profit improved by 46.15 per cent year-on-year (YoY) to RM1.9 million from RM1.3 million during the same period last year.
The stronger financial performance was mainly contributed by its construction business and the recovery of its furniture manufacturing and trading business segment despite being affected by the Movement Control Order (MCO) 3.0 lockdown towards the end of the quarter.
SNC managing director Emily Sow Mei Chet said the strong result is a testimony to the success of the company's transformation into a construction player.
At the same time, its furniture manufacturing business has also rebounded strongly during the current quarter.
Sow said SNC's construction business segment has got off to a great start, and the management is confident the segment will be a key growth driver going forward.
"We're excited with the prospect of the company as seen by the replenishment of the orderbook for our construction arm.
"Recently, we have just accepted seven letters of award for construction works of projects with a contract value of around RM34.5 million. This will put us in a strong growth trajectory going forward," she said.
Meanwhile, Sow said the company has also kick-started the transformation plan for its furniture manufacturing business, from the previous original equipment manufacturer (OEM) build-to-order model to the design-build-sell model.
She said this would play a vital role in modernising its existing core business and tapping on the strong demand in the post-Covid-19.
"SNC is optimistic that the outlook remains positive despite the challenges from the prolonged Covid-19 pandemic and the lockdown imposed to contain the infections.
"As the country's vaccination rollout continues to progress, the company is also positive that the current business segment that has yet to recover, which is the rental income, will return to a more stable level going forward, barring any future lockdowns that require further rental support," she added.
