ACE Market-bound Spring Art reports 3Q net profit of RM3m

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KUALA LUMPUR (Nov 5): ACE Market-bound Spring Art Holdings Bhd racked up a net profit of RM3.05 million for the third quarter ended Sept 30, 2019 (3QFY19) on the back of revenue of RM16.45 million.

The company said in a statement today that the revenue was derived from the design and development, manufacturing as well as marketing and sales of office furniture, bedroom furniture, living room furniture as well as other types of furniture.

Spring Art said the Middle East was the largest market contributing to its top line, accounting for approximately 56.3% of the total revenue in 3QFY19.

For the nine-month cumulative period, the ready-to-assemble furniture products designer and manufacturer registered a net profit of RM7.21 million against a RM44.15 million revenue. Earnings per share stood at 9.4 sen.

No comparative figure is available as this is the first interim financial report the company has announced in compliance with the listing requirements of Bursa Securities.

According to the company's prospectus, Spring Art reported RM6.3 million net profit and RM50.38 million revenue in FY18.

Commenting on its earnings, Spring Art managing director Jack Lim Kok Eng said the group's strong performance was due to higher demand for its ready-to-assemble furniture products.

He added the company has put in place a series of future plans for the expansion of its geographical footprint.

"Due to the ongoing US-China trade war, Spring Art will step [up] its efforts to get a bigger share of the markets in North America and Europe due to growing demand for Malaysian furniture there," he said in the statement.

Spring Art, which had recently launched its prospectus, recorded an oversubscription rate of 14.71 times for the 20.78 million new shares that were made available for the Malaysian public.

The Johor-based company is set to be listed on the ACE Market on Friday (Nov 8).

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