KUALA LUMPUR (Aug 20): Eita Resources Bhd's net profit for the third quarter ended June 30, 2018 (3QFY18) doubled to RM3.65 million from RM1.81 million a year ago, in tandem with higher revenue, unrealised foreign exchange (forex) gain on fair value valuation of forward exchange contracts and reversal of provision for allowance for doubtful debts.

According to the manufacturer of elevators and lift systems' Bursa Malaysia filing, its revenue grew by 11.3% to RM67.8 million in 3QFY18 from RM61 million in 3QFY17, mainly due to higher revenue from the services segment but mitigated by lower revenue from the manufacturing and marketing and distribution segments.

In a separate filing with Bursa, the board declared and approved a first interim dividend of 2 sen per share as well as a special dividend of 2 sen per share, bringing the total dividend to 4 sen per share, which will go ex on Sept 7 and payable on Sept 28. Based on Eita Resources' last closing price, the dividend yield stood at about 3.1%.

Despite the strong quarter, net profit for the group's first nine months ended June 30, 2018 (9MFY18) declined by 19.5% to RM14.3 million from RM17.7 million in the corresponding period a year ago, mainly due to lower revenue, higher inventory writedown in the marketing and distribution segment, and forex loss.

Eita Resources' revenue for the period fell by 5.3% year-on-year to RM199.4 million from RM210.5 million, on lower revenue from the manufacturing and marketing and distribution segments.

Moving forward, the board expects the group to achieve satisfactory results for this reporting financial year in view of the current order book and ongoing projects in hand, barring any unforeseen circumstances.

The group's share price closed unchanged at RM1.30 with about 87,500 shares traded, giving it a market capitalisation of RM169 million.