Construction and Engineering, Procurement, Construction and Commissioning (“EPCC”) specialist, Sarawak Consolidated Industries Berhad (“SCIB” or the “Company”), today announced its unaudited financial results for the first quarter ended 31 March 2026 (“Q1 FY2026”), recording total Group revenue of RM59.30 million and profit before tax (“PBT”) of RM1.13 million.
The completion marks a significant step in SCIB’s ongoing business realignment, following shareholders’ approval for the proposed disposal of SCM and the proposed disposal of lands at the Company’s Extraordinary General Meeting held on 4 May 2026. The disposal of SCM, which was undertaken for a cash consideration of RM113.0 million, enables SCIB to unlock value from its manufacturing business, strengthen financial flexibility and sharpen its focus on its remaining Construction and Engineering, Procurement, Construction and Commissioning (“EPCC”) activities.
The latest quarterly performance reflects an improvement from the immediate preceding quarter, supported by stronger recognition of construction works from ongoing projects and a stronger contribution from the Manufacturing segment, which has been classified as a discontinued operation following the Company’s proposed disposal of SCIB Concrete Manufacturing Sdn. Bhd. (“SCM”).
For Q1 FY2026, the Construction and EPCC segment recorded revenue of RM26.71 million, while the Others segment contributed RM0.24 million. Under continuing operations, the Company recorded revenue of RM26.95 million, representing a 32.8% increase compared to RM20.30 million in the immediate preceding quarter. Loss before tax from continuing operations narrowed significantly to RM1.40 million from RM27.77 million in the preceding quarter, which had been impacted by impairment of receivables amounting to RM22.32 million.
Meanwhile, the Manufacturing segment, classified as discontinued operation, recorded revenue of RM32.35 million and PBT of RM4.42 million for the quarter, mainly supported by steady sales of foundation piles and IBS products. The segment’s PBT improved from RM1.15 million in the immediate preceding quarter, primarily due to lower administrative expenses.
The Company recorded profit after tax of RM0.44 million for Q1 FY2026, with basic earnings per share of 0.06 sen. Net assets per share attributable to owners of the Company stood at RM0.18 as at 31 March 2026.
Non-Independent Non-Executive Chairman Datuk Chong Loong Men commented, “Q1 FY2026 marks an encouraging start to the year as SCIB continues to move through its recovery and realignment phase. The improvement in our Construction and EPCC revenue reflects better progress recognition from ongoing projects, while the narrowing of losses under continuing operations indicates that our focus on execution discipline and cost management is beginning to show results. As we move ahead, our priority remains clear — to rebuild our project pipeline, strengthen financial flexibility and position SCIB as a more focused EPCC player.”
As part of the Group’s ongoing transformation and governance enhancement initiatives, Datuk Chong Loong Men has today been redesignated as Non-Independent Non-Executive Chairman of SCIB. Concurrently, Mr. Ku Chong Hong will step down from his role as Chief Executive Officer and continue to serve as Managing Director of the Company, ensuring continuity in the execution of SCIB’s business strategies and growth plans while providing strategic guidance to the management team.
In line with this leadership transition, Mr. Michael Tan Thian Zhi, has been newly appointed as the Chief Executive Officer of SCIB. He holds a Master of Science in Management from Imperial College London and a Master of Engineering in Civil Engineering from University College London and is a Registered Engineer with the Board of Engineers Malaysia. With a multidisciplinary background spanning engineering, project execution, and leadership roles in the construction and infrastructure industry, Mr. Michael brings both technical proficiency and strategic management expertise to drive SCIB’s next phase of growth.
The Company also highlighted that it has continued to secure EPCC projects as part of its efforts to rebuild its project pipeline. This includes the recent RM32.8 million contract for the construction of SMK Balaban Jaya in Beluran, Sabah, which is expected to contribute progressively to earnings and provide additional revenue visibility.
Looking ahead, SCIB remains cautiously optimistic on its prospects, supported by Malaysia’s continued infrastructure spending, particularly in Sabah and Sarawak, where development allocations are expected to sustain construction activity. The Company remains mindful of potential headwinds, including raw material price fluctuations and project cost pressures, and will continue to focus on disciplined execution, effective cost control and order book replenishment to support long-term recovery.
