Kimlun 1Q net profit up 26% to RM15.9 mil

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KUALA LUMPUR (May 30): Kimlun Corp Bhd’s net profit for the first quarter ended March 31, 2019 (1QFY19) rose 26% to RM15.93 million, compared with RM12.65 million a year ago, on higher revenue.

This brought up earnings per share to 4.8 sen, from 3.91 sen in 1QFY18.

In a filing today, the group said revenue rose 44.2% to RM318.56 million from RM220.93 million, supported by its construction and manufacturing and trading (M&T) divisions.

“The improvement in construction revenue from RM194.05 million to RM241.34 million, i.e. by RM47.29 million (24.4%), was mainly attributable to higher revenue contribution from the Pan Borneo Highway Sarawak project on higher percentage of completion,” it said.

Moving forward, the group’s performance is expected to be contributed by its current order book.

As at March 31, 2019, the group has an estimated construction and manufacturing balance order book of about RM1.7 billion and RM300 million respectively, contributed by numerous construction and supply contracts.

“Our ongoing projects and sales orders comprise of contracts secured from, amongst others, Lebuhraya Borneo Utara Sdn Bhd, MMC Gamuda KVMRT (UGW) joint venture, UEM Sunrise Bhd Group, Sunway Iskandar Sdn Bhd, Hillcrest Gardens Sdn Bhd and China Railway First Group Co.Ltd,” it said.

The group will continue to actively bid for new construction projects in Malaysia, specifically those in relation to affordable housing development, which continue to receive strong demand from the low- and middle-income groups.

Kimlun closed unchanged at RM1.39 today, for a market capitalisation of RM461.3 million.