KUALA LUMPUR (Feb 13): Signature International Bhd posted a net profit of RM12.2 million for the second quarter ended Dec 31, 2014, 318% higher than the same period a year ago, in tandem with a sharp increase in revenue.

Revenue for the quarter was 66% higher at RM71.1 million, from RM42.9 million previously.

In terms of the group’s segmental performance to date, the kitchen and wardrobe segment remains its core profit contributor, delivering a profit growth of 913% as compared to Q2FY14.

This growth was largely due to the higher sales volume deriving from the group’s project division’s impressive order book, leading to improved revenue recognition for the current quarter under review, said the group in a statement.

The group’s order book has an unbilled value of approximately RM200 million currently.

For the cumulative six months, Signature (fundamental: 2.1, valuation: 2.4) delivered net profit of RM18.9 million, a 281% leap from RM5 million last year.

Revenue was 87% higher at RM130.4 million, compared with RM69.9 million in 2HFY14.

“The management is very satisfied with the financial results for the first half of this financial year. Nevertheless, we will continue to focus on our vision and business strategies and do our best to maintain our market leadership in the kitchen and wardrobe industry,” said group managing director Tan Kee Choong.

Looking ahead, Signature said its five year business plan is progressing, with the opening of two SignatureKitchen Lifestyle Galleries in 2014 — one in Puchong, Selangor; and another at Danga Utama, Johor.

Signature closed four sen or 2.17% lower at RM1.80, with a market capitalisation of RM215.92 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.)