KUALA LUMPUR (May 20): The shares of biscuits and coffee producer Hup Seng Industries Bhd spiked 12.37% following the release of its first financial quarter report ended March 31, 2015 (1Q15) yesterday.

At 12.30pm, 413,600 of Hup Seng’s shares traded 12 sen higher at RM1.09.

Yesterday, Hup Seng posted a 38% increase in net profit of RM13.2 million in its 1Q15 from RM9.5 million in the corresponding period last year due to lower input costs and promotional expenses incurred in the current quarter.

It also revealed a 1.65 unit earnings per share, which was 38.6% higher than 1.19 units reported the same quarter last year, on the back of a 10.3% higher revenue of RM71.1 million in 1Q15 compared to RM64.4 million last year.

Hup Seng also declared a 1.5 sen dividend per share in respect of year ended Dec 31, 2014, being the final dividend under the single-tier system amounting to RM12 million that is payable on June 10 subject to shareholders’ approval.

The group expects 2015 to be challenging and will remain vigilant and respond accordingly to the market environment.

Hup Seng (valuation: 2.1; fundamental: 3) also stated that it was committed to broadening its portfolio through product innovation and diversification to support the growth.

(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.)