KUALA LUMPUR (May 29): Mulpha International Bhd returned to profitability for its first financial quarter ended 31 March, 2015 (1QFY15), registering a net profit of RM41.23 million compared with a net loss of RM20.36 million in 1QFY14.

“The stronger performance in the current quarter was mainly attributed to gain on disposal of subsidiaries of RM50.39 million and a favourable foreign exchange rate movement on the group's cash and deposits which were denominated in US Dollar of RM22.91 million,” it said in a filing to the exchange today.

Mulpha (fundamental: 0.8; valuation: 0.9) added that its hospitality division contributed to the group’s profit for the quarter, having recorded a pre-tax profit of RM4.55 million from a pre-tax loss of RM6.14 million a year ago.

Revenue for the quarter saw an increase as well, going up 28.64% to RM163.83 million from RM127.35 million in 1QFY14.

Moving forward, the group said that its performance for the rest of financial year 2015 is expected to remain satisfactory, despite the implementation of the goods and services tax and fall in crude oil prices that will moderate the Malaysian economic conditions.

“However, such market conditions may also provide opportunities for new investments and acquisitions which the Group is constantly on the lookout for. We also remain optimistic that the Group is well positioned for future growth opportunities based on its strong and geographically diversified property portfolio located in Malaysia, Australia and United Kingdom,” it said.

Mulpha International share price closed 1.33% or 0.5 sen lower at 37.5 sen for a market capitalisation of RM789.46 million, with 1.8 million shares traded.

(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.)