Boustead Holdings 4Q net profit up 36% on year at RM299m

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KUALA LUMPUR, (Feb 27): Diversified entity Boustead Holdings Bhd's net profit rose 36% to RM299 million for the fourth quarter ended December 31, 2014 (4QFY14), from RM220.2 million a year earlier, mainly on lower operating cost and higher contribution from associates and joint ventures.
 
In a filing to Bursa Malaysia today, Boustead Holdings (fundamental: 0.65; valuation: 1.8) said revenue fell to RM2.83 billion, from RM3.59 billion.

For the full year, net profit dipped to RM408.2 million, from RM478.8 million a year earlier. Revenue fell to RM10.61 billion, from RM11.21 billion.

"Trading & industrial division’s turnover was 5% lower than the previous year, mainly due to decline in fuel prices. Plantation division’s revenue rose by 3%, mainly on improved palm product prices.

"Pharmaceutical division’s revenue was 9% higher, on improved contribution from all businesses. Property division’s cumulative revenue was 4% higher, largely on stronger revenue from hotel segment," Boustead Holdings said.

The group said the heavy industries division’s revenue was lower, in tandem with the progress of work from the littoral combat ship project.

Boustead Holdings plans to pay a dividend of five sen a share for 4QFY14, bringing full-year dividends to 26 sen.

At 4:07pm, Boustead Holdings shares fell five sen or 1% to RM4.65, for a market capitalisation of RM4.79 billion.

On the plantation segment, Boustead Holdings said the division’s profitability for the coming would be impacted by the volatility of crude palm oil (CPO) price and challenging operating condition in certain areas of Sabah and Sarawak.

"Going forward, the weakness of crude oil prices, competition from Indonesian palm oil, as well as from other edible oils, and the recent hike in import duty on vegetable oils and refined oils by India, may dampen the prospects for CPO prices," Boustead Holdings said.

(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.)