KUALA LUMPUR (Feb 13): Priceworth International Bhd posted a net profit of RM360,000 for the second quarter ended Dec 31, 2014, compared with a net loss of RM6.3 million a year ago, due principally to a reduction in cost of raw materials, which was achieved by increasing the usage of smaller logs.

This marks Priceworth’s (fundamental: 0.15; valuation: 1.2) third straight quarter of profit.

Revenue for the quarter however, declined to RM47 million, from RM50.3 million previously.

Priceworth saw a net profit of RM1.2 million in its first half ended Dec 31, 2014, compared to a net loss of RM12.3 million before, despite a slight ease in revenue.

“Priceworth has returned to profitability, as our margins continually improve in our sustainable, renewable timber division,” said Priceworth's executive director Richard Koo.

On prospects, Koo said the company expected to improve its 2015 performance, as the harvest from its sustainable forest plantation contributes to half of the total log supply for its downstream timber manufacturing business for the next three years.

“Besides further strengthening our core timber business for 2015 and beyond, Priceworth is also expanding into the oil and gas sector, as our existing shipyard is strategically located on East Coast of Sabah, and we are the only one serving this area,” added Koo.

The company currently manages 28,000 ha of sustainable forest, under a 50-year concession in Sabah.

Priceworth owns and operates a shipyard in Seguntor, Sandakan, which includes a dockyard and engineering facility to fabricate and service vessels and barges.

In September 2014, Priceworth entered into a joint venture with Semaring Enteprise — a licensed and registered contractor and supplier for Petroliam Nasional Bhd and its profit sharing contracts (PSC) partners.

Priceworth closed unchanged at 18.5 sen, with a market capitalisation of RM80.44 million.

(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.)