KUALA LUMPUR (May 17): Anzo Holdings Bhd, a timber product maker cum property developer, has reported profit after 16 consecutive loss-making financial quarters.
In its filing to Bursa Malaysia today, Anzo reported a net profit of RM1.27 million or 0.42 sen per share for the fourth quarter ended March 31, 2017 (4QFY17), versus a net loss of RM3.84 million or 1.35 sen per share a year ago.
Anzo said the improvement was mainly due to construction billings from its Porto De Melaka project, amounting to RM5.7 million; reversal on provision for doubtful debts of RM1.3 million; and no further inventory write down in the current quarter.
The group’s earnings were backed by a revenue of RM7.58 million in 4QFY17, equivalent to 5.4 times higher than the RM1.4 million recorded in 4QFY16.
For the whole FY17, however, Anzo still reported a net loss of RM4.63 million, which was 57.37% narrower than its RM10.85 million of net loss back in FY16.
Loss per share for the period narrowed to 1.55 sen, from 3.85 sen.
The group’s cumulative revenue doubled to RM12.26 million for FY17, from RM6.11 million in FY16.
Anzo’s managing director Datuk Eddie Chai Woon Chet said the group’s current total construction order book of RM301 million to date, is expected to sustain its current momentum and meet its objective to turn profitable by FY18.
“The outlook for the construction industry in Malaysia remains positive, more so with the expected recovery of the property sector and the robust public spending on major infrastructure projects,” he said.
“Anzo aims to grow its construction division more aggressively by securing more projects, while meeting our customers’ expectations with on-time and on-quality delivery. The group is also exploring opportunities to move into property development.” he added.
Anzo’s share price gained by 2.5 sen or 10% to 27.5 sen today, giving it a market capitalisation of RM87.76 million.