Favelle Favco 1Q net profit up 87.3% on higher crane sales, strengthening of US dollar

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KUALA LUMPUR (May 25): Favelle Favco Bhd, a subsidiary of Muhibbah Engineering (M) Bhd, saw its net profit rise 87.3% to RM22.5 million or 10.34 sen per share in the first quarter ended March 31, 2015 (1QFY15) from RM12.01 million or 5.58 sen per share a year ago due to increase in sales of cranes, strengthening of the US dollar and improved efficiency in operations.

Revenue increased 22.98% to RM191.96 million in 1QFY15 from RM156.09 million in 1QFY14.

In a filing with Bursa Malaysia today, Favelle Favco (fundamental: 1.7; valuation: 2.4) said despite the challenging outlook in the market, the group has an order book of RM967 million as at May 20, 2015 from the global oil and gas, shipyard, construction and wind turbine industries.

“The group will continue to execute and deliver its existing order book secured in hand and taking additional steps and actions for its business undertaking moving forward,” it added.

Favelle Favco shares closed 5 sen or 1.75% lower at RM2.80 today, with a market capitalisation of RM620.89 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.)