KUALA LUMPUR (May 25): Lii Hen Industries Bhd posted a net profit of RM10.74 million or 17.91 sen per share in the first quarter ended March 31, 2015 (1QFY15), up 30.13% on-year from RM8.2 million or 13.76 sen, on higher revenue and better US dollar conversion rate.

Revenue was up 17.55% to RM112.08 million from RM95.35 million; the company also proposed a dividend per share of 6 sen, compared to 4 sen in 1QFY14.

In a filing with Bursa Malaysia today, Lii Hen Industries said the economic improvement in the US, additional sales contribution from Asian markets, and the strengthening of the US dollar were the main factors for the increase in its revenue.

On prospects, it said the US job growth rebounded in April while unemployment rate dropped to 5.4%, which have bolstered optimism that economic growth is accelerating in US. This signifies that the company will continue to benefit from US' recovery.

"The main challenges that the group faces is at the local front where the acceleration of production costs and shortages of workforce will continue to affect the group's financial performance," Lii Hen added.

In view of that, it said the management will continue to focus on the group's core products to strengthen its market position, expand the customer base, and manage costs more effectively.

Lii Hen (fundamental: 2.5; valuation: 2.4) closed 7 sen or 1.68% lower at RM4.09 today, giving it a market capitalisation of RM245.4 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.)