KUALA LUMPUR (March 22): Palm oil equipment maker CB Industrial Product Holding Bhd saw its net profit for the fourth quarter ended Dec 31, 2020 (4QFY20) surged 178% to RM29.79 million from RM10.71 million in the immediate preceding quarter, thanks to its oil palm plantations segment.

Earnings per share increased to 6.09 sen from 2.18 sen previously, its filing with Bursa Malaysia today showed.

Its revenue climbed 10.92% to RM173.5 million from RM156.42 million in 3QFY20 on higher prices of palm products.

The group also declared a second single tier interim dividend of two sen per share for the financial year ended Dec 31, 2020 of which the entitlement and payment dates will be announced in due course.

On a yearly basis, net profit grew 32.42% from RM22.5 million in 4QFY19 due to higher project margin at its engineering division resulting from lower production costs.

Meanwhile, revenue inched up 0.73% from RM172.24 million mainly due to a new stream of revenue generated by the refinery segment as well as the increase in the oil palm plantations and special purpose vehicles segment.

For the full financial year ended Dec 31, 2020 (FY20), the company’s net profit jumped 59.57% to RM56.65 million from RM35.5 million a year earlier, while revenue increased 19.82% to RM542.19 million from RM452.49 million.

“Considering the progress of the projects secured in hand and the current challenging environment, the board is optimistic that the group will be able to achieve satisfactory results mainly driven by the palm oil equipment and engineering segment for the financial year ending Dec 31, 2021,” commented the group on its prospects.

At market close, CB Industrial Products was one sen or 0.83% lower at RM1.20 with some 110,200 shares traded. This gave the group a market capitalisation of RM582.96 million.