KUALA LUMPUR (Mar 18): SCGM Bhd’s third quarter net profit ended January 31, 2015 (3QFY15) rose 17.4% to RM3.8 million from RM3.3 million a year ago on higher topline and lower input costs.

Revenue for 3Q15 was up 10.6% to RM27.4 million from RM24.7 million, on the back of higher export sales, which rose 17.2% to RM12.5 million from RM10.7 million previously, while local sales was up 5.6% to RM14.8 million from RM14.1 million a year ago.

It also declared a third interim dividend of 2 sen per share, to be paid on April 17, 2015.

For the nine months to Jan 31 (9MFY15) group revenue rose 5.6% to RM80.7 million from RM76.5 million previously, while net profit grew by 15.7% to RM10.4 million from RM9.0 million a year ago, due to lower raw material prices.

In a press statement today, SCGM chairman and managing director Datuk Seri Lee Hock Seng said the group is confident of maintaining its growth momentum in the next financial year 2016.

The group has also commissioned its new plastic cup manufacturing plant at its existing premises in Kulai, Johor, in March. It had invested RM11.6 million in the plant for new machinery and construction.

“The plastic cups are complementary to our existing range of products which includes plastic trays mainly for the food sector. Thus far, we have received strong interest for plastic cups from our overseas customers, which will hopefully elevate the Group’s export sales going forward,” Lee said.

The plastic cups manufacturer announced a 3rd interim dividend of 2 sen per share to be paid on April 12, 2015.

SCGM (fundamental: 3; valuation 2.1) shares rose 1 sen today to close at RM2.69 per share giving it a market capitalisation of RM215.2 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.)