KKB returns to the black in FY17 as revenue jumps

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KUALA LUMPUR (Feb 9): KKB Engineering Bhd achieved a net profit of RM5.34 million in its fourth quarter ended Dec 31, 2017 (4QFY17), compared with a net loss of RM4.06 million a year ago, as it recorded higher revenue in the civil construction and steel pipe manufacturing divisions.

It was the second profitable quarter the group posted in a row, after reporting four straight quarters of net losses. Quarterly revenue jumped 2.7 times to RM70.17 million in 4QFY17, from RM26.12 million a year ago.

In a filing with Bursa Malaysia today, the group declared a first and final single tier dividend of 2 sen per share in respect of the financial year ended Dec 31, 2017 (FY17), payable on June 12.

For the full FY17, the group returned to the black with a net profit of RM1.64 million versus a net loss of RM5.78 million in FY16, after revenue grew 103% to RM209.27 million from RM103.11 million.

Moving forward, KKB said the board is cautious that continued uncertainties in the global economic environment, escalation of costs due to inflationary pressure, volatility of global raw material steel prices and fluctuation of exchange rates, may impact the group’s performance.

“We remain focused and [will] continue our efforts to strengthen and grow our core business in both engineering and manufacturing activities, based on strong fundamentals, to optimise our operations towards sustainable growth for the financial year ending 2018,” said KKB.

KKB also said the group will continue to bid for new contracts or projects, particularly government infrastructure projects, whenever the opportunity arises.

At 5pm, shares in KKB slid 1 sen or 1.12% to 88 sen for a market capitalisation of RM226.86 million. Over the past one year, the stock has gone down about 36.23% from RM1.38.