KUALA LUMPUR (Aug 17): Offshore crane fabricator Handal Resources Bhd registered a net profit of RM2.53 million or 1.58 sen a share for the second quarter ended June 30, 2015 (2QFY15), 3.6 times higher from RM698,000 or 0.44 sen a share a year ago, on higher revenue and improved gross profit margin in most of its business segments.

Its revenue for the period came in at RM30.4 million, 18.5% higher from RM25.66 million in 2QFY14, as its integrated crane, fabrication of crane and workover project businesses recorded higher turnovers, according to its filing to Bursa Malaysia today.

The group’s supply, fabrication and servicing industrial equipment and tank, as well as supply of telecommunication and broadcasting system segments, however, saw lower revenue due to decrease in work scope and activities.

For the six months period (1HFY15), Handal Resources' net profit came in at RM3.06 million, more than double the RM1.25 million it saw a year ago, while revenue came in marginally higher at RM50.67 million, 2% up from RM49.64 million in 1HFY14.

Handal Resources expects to sustain its performance for the remainder of FY15, in view of its business activities’ niche market, as well as the group’s continued servicing of existing long term contracts, despite current depressed oil prices.

Handal Resources (fundamental: 1.4; valuation: 1.7) closed 4.76% or 1.5 sen lower at 30 sen, with 191,200 shares traded. The group has a market capitalisation of RM47.97 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.)