Thursday 28 Mar 2024
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KUALA LUMPUR (June 28): Comintel Corp Bhd's net profit surged to RM5.36 million or 3.83 sen per share in the first quarter ended April 30, 2016 (1QFY17) from RM1.86 million or 1.33 sen per share a year earlier.

Quarterly revenue grew 24.5% on year to RM103.72 million from RM83.33 million due to better performance of the manufacturing segment on higher demand for the products it manufactured.

The latest quarterly earnings accounted for 38% of last year's full year net profit of RM13.89 million.

The group attributed this to the better financial performance of its manufacturing segment on productivity improvement, higher demand for its products and shipment of better margin products.

Comintel, through its subsidiaries, provides turnkey engineering design and integration.

Going forward, the group said the global economic outlook remains challenging amidst the current political situation in the European Union with the exit of UK and the ongoing commodity price crisis.

"We are not able to assess at this moment the impact, if any, the withdrawal of the UK from the EU will have on our business," it said, and is cautiously optimistic that the manufacturing segment will perform satisfactorily in FY17.

In view of the government slashing spending on information communication and technology related projects, Comintel said its system integration and maintenance service (SIMS) is not expected to be profitable in the current financial year.

As such, it said the segment will put more effort and focus on the green initiative solutions, such as advanced gasification green renewable energy generation solution, which will form part of its sustainable green business model moving forward.

"Although these solutions will need some time to reach maturity, we are confident these green initiatives will contribute positively to our sustainable earnings in the future," it added.

Shares in Comintel closed at 79 sen, up six sen or 7.48%, with a market value of RM110.6 million.

 

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