Friday 29 Mar 2024
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KUALA LUMPUR (May 20): Kian Joo Can Factory Bhd’s net profit jumped 43% to RM28.3 million in the first quarter ended Mar 31, 2015, from RM19.8 million in the previous corresponding quarter.

Revenue rose 9% to RM345.9 million, from RM317.1 million previously.

In a statement to Bursa Malaysia today, Kian Joo (fundamental: 1; valuation: 0.9) attributed the higher profit to improved contribution from its cans and cartons segments, while its contract packing segment returned to the black in 1QFY15.

It said the higher revenue was attributed to improved contributions from all of its segments.

Kian Joo said its operations in Malaysia and Vietnam are anticipated to remain challenging, due to stiff competition from players of the packaging industry.

It also faces challenges in managing its rising operating costs and interest rates, apart from the increased volatility in foreign exchange rates, which poses a risk to the group's profitability.

Kian Joo's share price rose three sen or 0.99% to RM3.05 today, giving it a market capitalisation of RM1.35 billion.

(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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