Friday 29 Mar 2024
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KUALA LUMPUR (Aug 19): Wood-based products maker Evergreen Fibreboard Bhd returned to the black  the second quarter ended June 30, 2015 (2QFY15) with a net profit of RM23.89 million or 4.66 sen per share compared with a net loss of RM21.69 million or 4.23 sen loss per share a year ago.

In a filing with Bursa Malaysia today, Evergreen attributed the increase in profit to the lower cost of log and glue, higher operational efficiency and synergistic cost savings derived from the group's recent restructuring of certain operational facilities.

Revenue for the quarter jumped 20% to RM259.96 million from RM215.81 million in 2QFY14, on higher sales volume and the strengthening of the US dollar.

For the six-month period ended June 30 (1HFY15), the group posted a net profit of RM43.95 million or 8.57 sen per share compared with a net loss of RM24.27 million or 4.73 sen loss per share in 1HFY14, while revenue climbed 8% to RM492.09 million, from RM455.33 million.

Going forward, Evergreen expects to post better results in the coming quarter, capitalising on the steady global demand for medium-density fibreboard (MDF) and the strengthening of the US dollar.

Besides that, the group will continue to employ cost control measures and to maximise productivity and equipment enhancement through the modernisation and automation of its manufacturing processes.

Evergreen  (fundamental: 0.85; valuation: 0.3) shares closed 9 sen or 4.8% higher at RM1.95 today, giving a market capitalisation of RM954.14 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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