KUALA LUMPUR (Sept 21): Shares in SCGM Bhd fell 3.52% in early trade this morning after its net profit slumped 81% to RM1.06 million or 0.55 sen a share in the first quarter ended July 31, 2018 (1QFY19), from RM5.59 million or 3.85 sen a share last year, due to higher expenses incurred in the quarter.

At 9.08am, SCGM fell 5 sen to RM1.37 with 181,600 shares done.

SCGM attributed the lower earnings to higher resin prices, finance costs, electricity costs, depreciation charges, labour costs and foreign exchange losses.

This was despite posting its highest quarterly revenue of RM55.81 million - up 4% from RM53.66 million a year ago - on higher local sales of plastic packaging products.

The group declared a first interim dividend of 0.5 sen per share for the financial year ending April 30, 2019 (FY19), payable on Oct 25.

SCGM said it is targeting new export markets as the group’s production capacity is set to increase with the commissioning of the new Kulai factory in December 2018.

Inclusive of the Klang Valley plant, the new Kulai plant will increase the group’s extrusion capacity by 64.9% to 67.6 million kg per year, from 41 million.