KUALA LUMPUR (Apr 29): Willowglen MSC Bhd’s net profit for the first quarter ended March 31, 2015 (1Q15) rose a marginal 1.3% on-year to RM3.92 million from RM3.87 million, despite significantly higher revenue, due to lower margins and higher research and development expenses.

Revenue for the quarter under review for the supervisory control and data acquisition systems (SCADA) company was at RM31.2 million, up 18.8% from RM26.3 million the year before, its filing to Bursa Malaysia this evening showed.

For the quarter, the Singapore market accounted for 69% of group revenue, while Malaysia contributed the remaining 31%.

Willowglen (fundamental: 3; valuation: 0.9) said the Indonesia operations are still at the development stage and will focus on providing SCADA and security solutions to the data centers, utilities and oil and gas market.

On prospects, Willowglen said the demand for SCADA systems in the transportation, power transmission or distribution, gas transmission, and water and waste water treatment industries will continue to drive group sales.

“With the current projects at hand, the financial results of the group for the current financial year is expected to be satisfactory,” it said.

In the past two months, Willowglen had obtained a slew of contracts from Singapore totaling almost RM30 million. This includes jobs from the Public Utilities Board, PowerGas Ltd and SP PowerAssets Ltd.

Shares of Willowglen closed unchanged at 89 sen today, giving it a market capitalisation of RM216.61 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.)