Kimlun 4Q net profit dips 28.6% on lower tax incentives

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KUALA LUMPUR (Feb 26): Engineering and construction services provider Kimlun Corp Bhd's net profit for the fourth quarter ended Dec 31, 2014 (4QFY14) fell 28.6% to RM9.15 million or 3.04 sen per share, from RM12.81 million or 5.33 sen per share a year ago, due to a recognition of a larger amount of tax incentives recognised in 4QFY13.

In a filing with Bursa Malaysia today, Kimlun (fundamental:1.3; valuation: 2.4) reported a 3.5% increase in revenue to RM280.43 million in 4QFY14 from RM270.9 million in 4QFY13, mainly due to the revenue contribution from its construction division which contributed 76% to the group’s revenue in the quarter under review.

For the 12 months ended Dec 31, 2014 (FY14), net profit rose 26.3% to RM45.09 million or 15.39 sen per share from RM35.72 million or 14.85 sen per share in FY13.

Revenue for FY14 increased 28.8% to RM1.22 billion from RM947 million in FY13, on improved construction division revenue.

The group also proposed a final dividend of 3.8 sen per share for FY14, subject to shareholders' approval at its forthcoming annual general meeting.

Going forward, Kimlun is optimistic that the construction sector in Malaysia and Singapore will continue to be vibrant in 2015, thus order book replenishment prospects remain encouraging.

It has an estimated construction and manufacturing balance order book of RM1.19 billion and RM230 million respectively as at Dec 31, 2014.

Kimlun shares closed unchanged at RM1.29 today, bringing a market capitalisation of RM387.73 million.

(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.)