KUALA LUMPUR (May 30): Bahvest Resources Bhd, previously known as Borneo Aqua Harvest Bhd, saw its net profit plunge 87.36% to RM8.62 million or 0.71 sen in the fourth quarter ended March 31, 2019 (4QFY19), from RM68.18 million or 11.32 sen a year ago, partly due to its adoption of the Malaysian Financial Reporting Standards (MFRS) framework.

The adoption of the new accounting framework had offset the contribution from higher quarterly revenue, which soared to RM31.83 million from RM755,000 a year ago, Bahvest said in a filing with the local stock exchange today.

Revenue from its aquaculture operations grew almost seven-fold to RM4.97 million from RM755,000 a year ago, while gross profit fell 98.96% to RM960,000 from RM92.29 million.

The group attributed its tremendous revenue growth in 4QFY19 to higher sales of larger grouper fish during the festive season in the quarter.

On the other hand, the substantial decrease in its gross profit was due to the negative movement in fair value of fishery stock of RM1.484 million following the group's adoption of the MFRS framework effective Jan 1, 2018.

Meanwhile, its mining operations segment recorded revenue and gross profit of RM26.85 million and RM12.13 million respectively in 4QFY19.

Bahvest explained that it began extracting gold from topsoil clearing in 2QFY19, but has yet to start drilling and mining sulphide and oxide rocks — which are expected to have higher gold content — at the identified mining site in the current quarter.

For the full year (FY19), Bahvest's net profit slumped 70.07% to RM5.55 million against RM18.54 million a year earlier.

This was despite revenue growing almost three times to RM65.02 million from RM22.22 million a year ago.

On its prospects, Bahvest said it would continue to face economic challenges and uncertainties for its aquaculture operations, both domestically as well as globally, due to the stiff competition from China producers.

"Nevertheless, the group places great emphasis on the improvement of its operational efficiency in achieving a sustainable aquaculture business," it added.

As for its mining operation, Bahvest expects this new segment to contribute positively to its future earnings as it expects the gold production to increase further once it starts to drill and mine sulphide and oxide rocks.

At 3.37pm, shares of Bahvest rose one sen or 1.59% to 64 sen, valuing it at a market capitalisation of RM783.15 million. It saw some 5.95 million shares traded.