Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 20): Engtex Group Bhd reported a net profit of RM14.73 million or 4.97 sen a share for the second quarter ended June 30, 2015 (2QFY15), a slight 0.88% lower from RM14.86 million or 5.04 sen a share a year ago, while revenue weakened.

In a filing with Bursa Malaysia, the pipe manufacturer said revenue for the period slipped 10.7% to RM299.38 million from RM331.28 million in 2QFY14, due to the temporary softening of demand for certain metal-related trading products after the implementation of the goods and services tax (GST) on April 1.

For the six-month period (6MFY15), net profit increased to RM28.24 million, 11.6% higher from RM25.31 million a year ago, as the group saw increased market demand for certain metal-related trading products and manufactured steel products.

The group’s property development division, however, saw an increase in operating expenses for its project in Kepong, which contributed to the division recording a loss before tax of RM600,000 for 6MFY15, compared to a profit before tax of RM1.7 million a year ago.

Revenue for the period also increased 2.4% to RM605.77 million, from RM591.57 million in 6MFY14.

Moving forward, the group said its performance will continue to be affected by factors such as the volatility in the international and domestic metal prices, as well as the timely implementation of projects in the construction, utilities and infrastructure and property development sectors.

“The group will continue to focus on expanding its existing product range for its wholesale and distribution division locally and abroad, and will improve and optimise its operating capacity in its manufacturing division,” Engtex said in its filing with Bursa.

“The property division expects to contribute from the completed and residential and commercial properties in Selayang, and the new property development project in Kepong,” it added.

Engtex (fundamental: 0.9; valuation: 1.8) closed 2 sen or 1.87% lower at RM1.05, for a market capitalisation of RM316.91 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.)

 

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