Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (May 25): Tracking solutions provider and property developer Grand-Flo Bhd is expecting to see a better overall performance for its financial year ending Dec 31, 2015 (FY15) on higher revenue contribution from its property segment and its product tracking solutions, with the latter seeing better sales due to the implementation of the goods and services tax (GST).

Grand-Flo (fundamental: 1.4; valuation: 0.8) group president and managing director Derrick Tan said its first quarter ended March 31(1QFY15)'s net profit of RM5 million is already 75% of its full year FY14 net profit of RM6.67 million.

"We expect our Thai-associate company, Simat Technologies Public Company Ltd, to turn black by the end of this year," he told reporters after the group's annual general meeting today.

Furthermore, he said Grand-Flo aims for its property development segment to contribute to half of the group's revenue in the financial year ending Dec 31, 2015 (FY15) from 20% in FY14.

Grand-Flo diversified its business to include property development in 2014; it now has two on-going projects in mainland Penang - Vortex Business Park and The Glades - with gross development values of RM220 million and RM63 million, respectively.

Both projects are targeted for completion in 2017. Unbilled sales of RM78.1 million from them will be recognised till 2017.

"We will also benefit from the implementation of GST as businesses look for solutions," he said, adding that the company will target small and medium businesses, especially those in the fast moving consumer goods (FMCG) and food and beverage (F&B) industries.

Its current orderbook for the tracking solutions segment is at RM14 million.

Grand-Flo posted a net profit of RM5.03 million in 1QFY15, up 50.6% from RM3.34 million a year ago; revenue was up 91.69% at RM27.22 million compared with RM14.2 million a year ago.

This was attributable to a favourable product mix as well as contributions from the property segment in the quarter under review.

Grand-Flo reported a net profit of RM6.16 million in FY14, down 52.51% from RM12.97 million in FY13; revenue was down 4.43% at RM85.64 million compared with RM89.6 million in FY13. 

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.) 

      Print
      Text Size
      Share