Kumpulan Perangsang 3Q net profit jumps 58%, declares two sen dividend

Kumpulan Perangsang 3Q net profit jumps 58%, declares two sen dividend
-A +A

KUALA LUMPUR (Nov 25): Kumpulan Perangsang Selangor Bhd (KPS) posted a 58% jump in its net profit to RM25.65 million for the third quarter ended Sept 30, 2021, from RM16.16 million in the previous year’s corresponding quarter, as revenue strengthened on steady sales across its manufacturing business amid positive momentum seen both locally and abroad.

Revenue grew 19% to RM360.1 million from RM302.34 million, its bourse filing showed. KPS also announced an interim dividend of RM10.7 million or two sen per share for FY21, payable on Dec 30.

In a statement, the group said its manufacturing business saw a 23% increase in revenue contribution, although its sales were affected by the global chip shortage, which had put some pressure on customer orders.

It also noted that the resurgence of Covid-19 cases during the reporting quarter had restricted worker mobility to some extent in its plants in Malaysia and Vietnam.

Meanwhile, its industrial tooling division saw higher sales, amid stronger traction from new and existing customers, supported by a steady retail sentiment and consumer demand in the US.

Its trading business, under Aqua-Flo Sdn Bhd, was relatively flat in comparison, due to lower water demand from the industrial and commercial sectors when the MCO was in effect.

Meanwhile, the group's other income more than doubled to RM15.5 million during the quarter from RM4.7 million a year earlier, mainly due to a property disposal gain amounting to RM10.4 million.

For the cumulative nine months ended Sept 30, KPS' net profit surged 385% to RM38.3 million from RM7.89 million in the previous year, while revenue grew 31% to RM992.24 million from RM758.2 million.

KPS managing director and group chief executive officer Ahmad Fariz Hassan said the past quarter was challenging amid the overall supply chain and labour headwinds.

“But our team continued to navigate, and in some instances, outpace the challenges. For one, we addressed the mobility restrictions in Bac Ninh by sheltering our workers in the factory. We also rebalanced the business, capitalised on emerging opportunities and ensured competitive repositioning of our products,” he said.

Looking ahead, the group said supply chain and labour challenges will likely still remain but expects its operations to progress in the next quarter.

KPS shares closed unchanged at 73 sen, giving it a market capitalisation of RM392.3 million.

Tan Choe Choe