Perak Corp bounces back with profit of RM15.35m in 1QFY15

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KUALA LUMPUR (May 22): Perak Corp Bhd saw its net profit ballooned to RM15.35 million or 15.35 sen per share in the first quarter of financial year 2015 (1QFY15) ended March 31, 2015, compared with a loss of RM2.03 million or 2.03 sen per share, due to increased land sales from its township development segment and port operations.

In filing with Bursa Malaysia, Perak Corp (fundamental: 1.9; valuation: 1.7) announced its revenue more-than-doubled (124% increase) to RM50.86 million in 1QFY15, from RM22.62 million in the first quarter of financial year 2014 (1QFY14).

In accompanying notes on its financial performance, Perak Corp, which the Perak state’s investment arm had once wanted to take it private, said the township development segment contributed 45% in revenue to the company’s total revenue, mainly from profit from property joint ventures, land sales and other ancillary services.

The segment’s profit before tax (PBT) of RM13.3 million, contributed 54% to overall PBT.

The infrastructure segment had contributed as a main source of revenue and profit before tax for the company in 1QFY15, with revenue from port operations increasing 8% as a result of increased cargo throughput Lumut Maritime Terminal (LMT) and Lekir Bulk Terminal (LB).

Revenue from the division had been collected mainly from port operations for the provision of port facilities and ancillary services at LMT, as well as contractual revenue under the operation and maintenance of LBT, aside from revenue from sales and rental of LMT port-related industrial land.

Perak Corp said it “may” be able to achieve satisfactory results in the financial year ending Dec 31, 2015 (FY15).

“Although infrastructure segment is expecting growth of its cargo throughput during the year, sales of industrial land is expected to be lower, as it has exhausted its landbank at Lumut Port Industrial Park,” the note read.

“Business activities at Bandar Meru Raya are expected to increase during the year and the group is embarking on long-term strategies for township development segment, which is expected to result in lower land sales in the short and immediate term.”

Perak Corp shares fell eight sen or 2.5% at RM3.12, with a market capitalisation of RM320 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.)