KUALA LUMPUR (May 26): Thong Guan Industrial Bhd saw its net profit for the first quarter ended March 31, 2016 (1QFY16) surge near three times to RM13.07 million or 12.42 sen per share from RM4.63 million or 4.4 sen per share a year ago, underpinned by increase in plastic products revenue and higher margin, the latter mainly from export sales.

Quarterly revenue came in 11.7% higher at RM179.67 million from RM160.79 million previously, on more plastic products sales, and higher average prices of raw materials which translated into higher selling prices, its bourse filing today showed.

No dividend was declared for the current quarter under review.

Thong Guan said its plastic and petroleum products segment recorded a profit before tax (PBT) of RM14.36 million from RM2.43 million a year ago, due to the higher contribution from its stretch films, industrial bags, garbage bags and polyvinyl chloride (PVC) food wraps divisions.

Its food, beverages and other consumable products recorded a PBT of RM1.36 million from RM1.34 million, due to higher margin recorded by coffee and tea products.

During the quarter, the plastic and paper products trader said it has successfully commissioned its 33-layer nano-technology stretch film line, its five-layer blown film line, its automatic continuous organic noodle production line, as well as its research and development centre.

"The group has now positioned itself on a growth trajectory. It is pleasing to report that all operating divisions within the group has been profitable in the current quarter and is charting further growth," it said.

It is also currently looking at acquiring stretch film and PVC food wrap lines, hence further growth on both volume and value is expected from plastic products and food and beverages in year 2016.

Shares in Thong Guan closed up seven sen or 2.27% at RM3.16 today, for a market value of RM332.66 million.