Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 30): Lingkaran Trans Kota Holdings Bhd (Litrak)’s net profit for first quarter of financial year ended June 30, 2016 (1QFY17) jumped by 40.47% to RM61.09 million or 11.68 sen per share, from RM43.49 million or 8.42 sen per share a year ago, mainly attributable to higher revenue recognized resulting from the scheduled toll rates increase for LDP, scheduled for Jan 1, 2016.

The Group’s revenue for the quarter grew by 41.43% to RM136.02 million, from RM96.17 million, due mainly to higher traffic volume recorded in the current quarter. The higher revenue in the current quarter as compared to preceding year's corresponding quarter, was also due mainly to LDP's scheduled Jan 1, 2016 toll rates increase.

The board of directors has approved a single tier interim dividend of 10 sen per ordinary share for the financial year ending March 31, 2017. The payable date and ex-date for the interim dividend has yet to be announced. A note filed with Bursa also said for the preceding year's corresponding period, a single tier interim dividend of 15 sen per ordinary share was declared.

On its outlook, it noted pursuant to the concession agreement (CA), the final toll increase was scheduled for Jan 1, 2016. However, the government has decided to defer the increase until further notice and hence, will have to compensate Litrak for the loss in revenue, as a result of the deferment.

“Based on our past experience with the government, the group is optimistic that terms of the CA will continue to be observed by all parties concerned. Consequently, barring any unforeseen circumstances, the board of directors is optimistic that revenue will increase in line with the increase in traffic volume,” it added.

As of closing, Litrak’s share price edged higher by 0.85% to RM5.90, with only 119,800 shares traded. At its current level, it is trading at a trailing P/E of 17.51 times, with a market capitalisation of RM3.08 billion. It has a dividend yield of 4.27%.

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