MSM 1Q net profit rises 26% on lower raw sugar cost

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KUALA LUMPUR (May 26): MSM Malaysia Holdings Bhd registered a 26% increase in net profit for 1Q15 to RM71.03 million from RM56.33 million in its previous corresponding quarter.

Revenue was slightly up as well, gaining 2.05% to RM508.49 million from RM498.26 million a year ago.

In a filing to Bursa today, the group said that its growth in profit and revenue was higher mainly due to the lower cost of raw sugar and higher revenue recorded for Industries sales, despite lower sales for domestic and export.

Going further into the group’s FY15, MSM (fundamental: 2.8; valuation: 1.4) said that it was expecting to be able to sustain a satisfactory performance, notwithstanding the volatility of commodity prices.

MSM, a listed subsidiary of Felda Global Ventures Holdings Bhd (fundamental: 1.55; valuation: 1.4), is a major refined sugar supplier in Malaysia.

At 12.30pm, Felda rose four sen or 1.98% to RM2.06, with some 1.07 million shares traded.

(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.)