KUALA LUMPUR (Nov 20): Sheet metal manufacturer Ewein Bhd reported that its profit for the third quarter ended Sept 30, 2015 (3QFY15) jumped more than 20-fold to RM8.42 million from RM389,000 in last year's corresponding quarter.

Revenue for 3QFY15 more than doubled to RM29.21 million from RM13.42 million.

In its Bursa Malaysia note, the group said its early adoption of MFRS 15, which deals with revenue from contracts with customers, has resulted in the group recognising revenue from its property developments based on the stage of completion method.

In July, it said Ewein Zenith Sdn Bhd began the development of a 50-acre wellness resort city in Penang known as Wellness City of Dreams, which is worth RM800 million and is expected to contribute RM200 million in pre-tax profit to the group starting 2016.

Ewein Bhd's land unit Ewein Land Sdn Bhd owns 60% of Ewein Zenith.

Profit for its cumulative nine-month period rose more than tenfold to RM9.62 million from RM759,000 last year while its cumulative revenue saw a 46.32% increase to RM49.47 million from RM33.81 million.

Moving forward, the group is optimistic that the manufacturing division will be positive and it is poised to further improve in view of the current weak currency environment for the remaining months of this year.

"The Board expects a significant contribution from its property development segment, which will be expected to drive the Group's performance positively in the future," said the announcement.

Ewein shares closed at RM1.01, up by one sen or 1% with 4,492,400 shares traded for a market capitalisation of RM210.9 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.)