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KUALA LUMPUR: Oriental Food Industries Holdings Bhd has proposed a bonus issue of 60 million new shares on the basis of one bonus share for every existing share to entitled shareholders, at a date to be announced later.

The confectionery and snack food manufacturer also announced its results for the fourth quarter ended March 31, 2015 (4QFY15) yesterday, which saw its net profit jump 141% to RM7.55 million from RM3.13 million for 4QFY14, on higher revenue of RM58.94 million from RM55.4 million a year ago. For the full FY15, Oriental Food saw its net profit grow 37% to RM22.19 million from RM16.17 million for FY14. Revenue climbed 4.5% to RM237.03 million from RM226.89 million. It declared an interim dividend of seven sen for 4QFY15, bringing total dividends declared for FY15 to 13 sen.

“Despite facing various challenges in competitive markets, the board expects the performance of the group to be satisfactory for the coming FY16,” it said in a filing with Bursa Malaysia yesterday.

Oriental Food (fundamental: 2.8; valuation: 1.1) is also proposing a one-for-two share split, which will be undertaken concurrently with the bonus issue. The proposed exercises are expected to raise its issued capital to up to 240 million shares, from 60 million shares currently.

It expects to complete its corporate proposals by the third quarter of 2015.


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. Go to www.theedgemarkets.com for more details on a company’s financial dashboard.

 

This article first appeared in The Edge Financial Daily, on May 22, 2015.

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