Thursday 28 Mar 2024
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KUALA LUMPUR: Grand-Flo Bhd, a tracking solutions provider and property developer, expects to post better results for the financial year ending Dec 31, 2015 (FY15), on higher revenue contribution from both segments.

Its group president and managing director Derrick Tan said its net profit of RM5.03 million for the first quarter (1QFY15) had already met 75% of its full-year net profit of RM6.67 million for FY14.

“We expect our loss-making 19%-owned Thai associate Simat Technologies PCL to return to the black by the end of this year,” he told reporters after the group’s annual general meeting yesterday.

As of this month, Simat Technologies has secured 6,000 Internet subscribers and hopes to achieve 10,000 to 12,000 subscribers for the business to break even.

Simat Technologies launched its high-speed broadband services under in-house brand Sinet in Chiang Mai and Korat, Thailand in mid-2013.

Tan also said Grand-Flo aims for its property development segment to contribute to half of the group’s revenue for FY15, from 20% for FY14.

Grand-Flo diversified its business to include property development last year. It now has two ongoing projects in mainland Penang called Vortex Business Park and The Glades, which have gross development values of RM220 million and RM63 million, respectively.

Both projects are targeted for completion by 2017, with unbilled sales of RM78.1 million.

Tan said the group will focus on property development projects in Penang and the Klang Valley.

“We will also benefit from the implementation of the goods and services tax (GST) as businesses will have to look for solutions,” he said, adding that the group is targeting small and medium businesses, especially those in sales force-focused industries, such as fast-moving consumer goods and food and beverage companies.

“Businesses have up to September to comply. Due to the complexity of the GST, it is costly for them to calculate manually. They will need to automate [their system],” Tan added.

Grand-Flo’s current order book for its tracking solutions segment is at RM14 million, and this segment is expected to contribute to 50% of revenue for FY15.

Grand-Flo posted a net profit of RM5.03 million for 1QFY15, up 50.6% from RM3.34 million a year ago, while revenue rose 91.69% to RM27.22 million from RM14.2 million.

The improved performance for the quarter under review was attributable to favourable product mixes and contributions from the property segment. The net gearing of the group stood at 0.16 times.

Grand-Flo (fundamental: 1.4; valuation: 0.8) shares closed 1.5 sen or 4.92% higher at 32 sen yesterday, with a market capitalisation of RM154.6 million.


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. Go to www.theedgemarkets.com for more details on a company’s financial dashboard.

This article first appeared in The Edge Financial Daily, on May 26, 2015.

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