KUALA LUMPUR (Aug 18): CB Industrial Product Holding Bhd (CBIP) saw its net profit drop 15.86% year-on-year to RM17.77 million or 3.35 sen per share for the second quarter ended June 30, 2015 (2QFY15) on higher taxation.
The palm oil mills equipment manufacturer recorded a net profit of RM21.12 million or 7.96 sen per share last year.
Accordingly, its revenue for the quarter weakened 7.07% to RM115.62 million from RM124.42 million a year ago due to lower project billing by the special purposes vehicles segment.
No dividend was declared for the current quarter under review.
For the cumulative six months (1HFY15), the group's net profit came in 9.7% lower at RM233.27 million or 7.49 sen a share, as compared to RM245.46 million or 16.74 sen a share last year.
Revenue fell 4.97% to RM233.27 million from RM245.46 million a year earlier.
In a filing with Bursa Malaysia today, CBIP said its profit before taxation (PBT) for the six months ended June 30, 2015 increased marginally despite a 5% decrease in revenue.
"The marginal increase in the group's PBT was due to higher contribution from the palm oil equipment segment despite lower contributions from the special purpose vehicles segment and the share of results of the associates," it added.
According to the group, its palm oil mill equipment segment reported higher revenue and PBT by 8% and 11% respectively as compared to the same period last year.
The increase in profit was mainly due to the improvement in project billing and profit margin," it added.
Looking forward, the group expects it could achieve satisfactory results for the financial year ending Dec 31, 2015 driven by the palm oil mill equipment and special purpose vehicles segments.
Shares in CBIP (fundamental: 3.0; valuation: 1.8) closed three sen or 1.76% higher at RM1.73, bringing its market capitalisation to RM911.72 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.)