ECS ICT 3Q net profit up 37.89% to RM7.28mil on stronger sales

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KUALA LUMPUR(Nov 5): Information, Communication and Technology (ICT) distributor ECS ICT Bhd saw its net profit for the third quarter ended Sep 30, 2014 (3QFY14) rose 37.89% to RM7.28 million from RM5.28 million in the same quarter last year on higher sales recorded.

Revenue for 3QFY14 increased by 13.89% to RM392.01 million, from RM344.19 million in 3QFY13 mainly due to stronger sale of personal computers(PCs), notebooks and smartphones.

For the nine months ended Sep 30, 2014(9MFY14) the group's net profit jumped 14.11% to RM19.58 million, from RM17.16 million in the same period last year.

Revenue rose 18.1% to RM1.13 billion in 9MFY14 as compared to RM964.99 million in 9MFY13.

The group attributed its year-to-date better net profit and revenue to higher sales recorded by its ICT distribution and ICT services segment.

Foo Sen Chin, managing director of ECS ICT, said in a separate statement that the company has seen strong sales growth from its ICT distribution segment over the last five quarters, reflecting unwavering demand for PCs, notebooks and smartphones.

“We were recently appointed by BenQ to distribute its F5 and T3 smartphones to the Malaysian market.. this addition in our portfolio, coupled with our existing smartphone brands of Lenovo and ASUS, places us in a favourable position to provide the local market with a wider variety of smartphones at lower spectrum of the price range,”said Foo.

Foo is confident of ending the year on a high note, as the fourth quarter is traditionally the strongest quarter and coupled with consumer demand for ICT products remaining resilient.

The group declared its first single-tier interim dividend of 3 sen per share for financial year ending Dec 31,  2014 (FY2014), translating to a total payout of RM5.4 million, or 27.6% of 9MFY14 profit to be paid on Dec 11, 2014.