Opcom Q3 net profit halves

PETALING JAYA: Opcom Holdings Bhd’s net profit halved to RM586,000 in the third quarter ended Dec 31, 2017, from RM1.28 million in the previous corresponding quarter.
The group is engaged in renting of building and providing management services to its subsidiaries. It also involved in the manufacture of fibre optic cables and systems, trading and engineering services. Its products include aerial cables, dielectric self-supporting cables, duct cables, direct burial cables, anti-rodent cables and indoor cables.
Revenue for the quarter rose 30.2% to RM27.48 million, from RM21.1 million in the same period a year ago, due mainly to increase in the supply of thixotropic gel, trading of industrial materials and engineering services.
For the nine months period, Opcom’s net profit fell 92.3% to RM431,000, from RM5.6 million a year ago, while revenue increased by 2.25% to RM72.6 million, from RM71 million previously.
On its prospects, Opcom said the group’s profit margin continues to come under pressure from increasing raw material costs, the challenging business environment and limitations in passing increased costs to its customers in the short term.
The board expects the remaining quarter of the group’s financial year-end to be challenging, adding that the management is doing its best to improve the overall cost structure.