Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Feb 21): D&O Green Technologies Bhd's fourth quarter net profit rose 82.68% to RM6.94 million, from RM3.8 million a year ago, thanks to an improved profit margin arising from a favourable change in sales mix, and increased production efficiencies.

Earnings per share (EPS) for the quarter ended Dec 31, 2017 (4QFY17) increased to 0.69 sen from 0.38 sen previously, the group said in a filing with Bursa Malaysia.

D&O proposed a final dividend of 0.5 sen per share, pending shareholders' approval.

Revenue grew 3% to RM132.53 million, from RM128.64 million in 4QFY16, mainly driven by the automotive segment.

For the full year, D&O's net profit almost doubled to RM22.37 million, from RM11.27 million in FY16, while revenue grew 7.7% to RM463.34 million from RM430.1 million.

EPS rose to 2.24 sen, from 1.14 sen in FY16.

D&O said the outlook for the automotive light-emitting diode (LED) industry is expected to remain bright in FY18, underpinned by increasing LED adoption in the car exterior lighting and new interior lighting applications.

The group said its 61.84%-owned Dominant Opto Technologies Sdn Bhd, having established itself as a reliable partner to global automakers with physical presence in major automotive hubs around the world, is expected to benefit from this burgeoning trend.

"Management is optimistic that the growth momentum is sustainable in 2018 and beyond. Notably, Dominant has made significant progress in penetrating the car exterior lighting market, interior display units and dynamic ambient lighting (using its Smart RGB LED solution) which management believes will translate into significant revenue stream in years to come," said D&O.

"Despite the recent strength in the Malaysia ringgit versus the major export currencies, namely the US dollar and the Chinese yuan, gross margins are expected to remain stable as Dominant's sales currency profile and cost currency profile provide a substantial natural hedge to currency fluctuation," it added.

D&O also said renovation work on the office block of the recently acquired 2.41-hectare land cum factory building is expected to commence in 2QFY18 and be completed by 1QFY19.

"Upon completion, the support offices will move to the new building, thus freeing up space in the existing plant for future production capacity expansion," it said.

D&O's share price fell 0.5 sen or 0.76% to close at 65 sen today, giving it a market capitalisation of RM664.95 million.

 

      Print
      Text Size
      Share