KUALA LUMPUR (May 18): ELK-Desa Resources Bhd's net profit rose 26% to RM6.42 million in its fourth quarter ended March 31, 2017 (4QFY17), from RM5.11 million a year ago, thanks to higher contribution from its hire purchase business and lower finance cost.
Revenue for the quarter grew 39% to RM24.85 million, from RM17.90 million a year ago (4QFY16). Besides the hire purchase business, better topline was also contributed by its furniture business.
The group proposed a single-tier final dividend of 3.5 sen per share for FY17, subject to shareholders' approval, with entitlement and payment dates to be fixed later.
For the full year (FY17), ELK-Desa's net profit climbed 22% to RM23 million, from RM18.79 million a year ago, as revenue gained 47% to RM94.49 million, from RM64.17 million in FY16.
In a filing with Bursa Malaysia, ELK-Desa said despite cautious outlook ahead, the group is unlikely to experience any slowdown in demand for second-hand car financing in FY18.
This, it said, is because the business segment it operates in, is still relatively small, as compared to the overall auto financing industry.
Nevertheless, it cautioned downside credit risk remains for the group’s hire purchase segment within the current economic environment.
“Therefore, the group will continue to place a strong emphasis on close monitoring and efficient debt recoveries, as well as [on] follow-up mechanism, to minimise the impact,” it added.
ELK-Desa Resources shares closed one sen or 0.85% higher at RM1.19 today, for a market capitalisation of RM274.09 million.