KUALA LUMPUR (Aug 19): Apex Healthcare Bhd saw its net profit for the second quarter ended June 30, 2015 (2QFY15) fall 5.64 sen per share or 13.63% to RM6.6 million, from RM7.5 million or 6.42 sen per share last year, due to losses recorded in its associate company.  

Quarterly revenue grew 1.46% to RM124.28 million, from RM122.49 million a year earlier.  

In a filing with Bursa Malaysia today, Apex Healthcare said the group recognised RM0.5 million as its share of losses from associate company Straits Apex Sdn Bhd for 2QFY15, as compared to RM1.5 million in 1QFY15.

This means that for the six months, associate losses amounted to RM2 million.

"This apart, the performance of the group's core businesses improved over the same period in 2014," it added.  

Despite the lower earnings, the pharmaceutical company declared an interim single-tier dividend of 5.0 sen per share for the financial year ending Dec 31, 2015, payable on Sept 30.

The group paid a 3.5 sen dividend in the same period last year.  

For the cumulative six months (1HFY15), Apex Healthcare posted an 11.26% decline in net profit to RM15.05 million or 12.85 sen per share, as compared to RM16.96 million or 14.48 sen per share last year.  

This is despite revenue rising 4% to RM264.34 million, from RM253.42 million last year.  

Going forward, Apex said business momentum in the second half of 2015 may be affected by the weak ringgit and poorer consumer confidence, especially if foreign exchange volatility and uncertainties in the Malaysian economy persists.

"In this challenging environment, and barring further unforeseen developments, the board remains cautiously optimistic that the group's performance to date and it's well-placed fundamentals should result in a satisfactory performance for financial year 2015," it added.  

Apex' (fundamental: 2.1; valuation: 1.4) shares closed one sen or 0.25% higher at RM3.95 today, for a market capitalisation of RM562.73 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.)