KUALA LUMPUR (June 10): CB Industrial Product Holdings Bhd’s first quarter net profit rose 51.2% to RM18.58 million from RM12.29 million a year ago, mainly due to higher contribution from its palm oil equipment and engineering segment, and palm oil plantations segment, as well as on improved share of results of associates and joint ventures.

Revenue for the quarter ended March 31, 2021 increased 45.63% to RM157.32 million, from RM108.03 million previously, thanks to higher revenue generated by the refinery and palm oil plantations segments, the group said in a filing with Bursa Malaysia.

The palm oil equipment and engineering segment reported a 11% rise in pre-tax profit, while revenue increased marginally. The increase in profit was mainly due to higher project margin and lower operating expenses.

The palm oil plantations segment also reported higher revenue and pre-tax profit. The increase in revenue was mainly due to higher revenue generated from its palm oil milling operation, along with higher prices of palm products.

The associates and joint venture contributed a combined share of profit of RM3.6 million, against a combined loss of RM1.5 million in the same period last year. The improvement was mainly due to higher prices of palm products during the current financial period.

Considering the progress of the projects secured in hand and the current challenging environment, CB Industrial Product is optimistic that the group will be able to achieve satisfactory results for the financial year ending Dec 31, 2021.

CB Industrial Product's share price closed three sen or 2.27% higher at RM1.35, valuing the group at RM655.63 million.