KUALA LUMPUR (May 20): Batu Kawan Bhd’s net profit dropped 25.9% to RM120.9 million in the second quarter ended March 31, 2015, from RM163.2 million in the previous corresponding quarter.

The lower net profit came on weak contribution from its plantation and manufacturing segments, despite improved contributions from its property and investment holding/others segments.

The group’s revenue, however, rose 4.5% to RM3.16 billion, from RM3.02 billion a year ago, as all segments reported higher revenues.

In its result announcement to Bursa Malaysia, Batu Kawan (fundamental: 1.4; valuation: 1.4) declared an interim single tier dividend of 15 sen per share for the financial year ending Sept 30, 2015.

For the half-year period, net profit declined 25.7% to RM237.8 million, from RM320.2 million in the same period last year; while revenue grew 13.6% to RM6.37 billion, from RM5.61 billion previously.

Batu Kawan said the second half-year net profit came on weak contribution from its plantation and manufacturing segments, despite improved contribution from its property and investment holding/others segments.

It added that higher half-year revenue was due to all segments reporting higher income.

On prospects ahead, Batu Kawan’s plantation's profit for the current financial year is expected to be lower than last financial year’s, in view of the prevailing low palm oil prices.

Batu Kawan's share price ended flat at RM18.18 today, giving it a market capitalisation of RM7.41 billion.

(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.)