KUALA LUMPUR (Sept 17): Automotive parts manufacturer Sapura Industrial Bhd saw its net profit plunge 97.8% to RM84,000 or 0.12 sen per share for the second financial quarter ended July 31, 2015 (2QFY16) from RM3.82 million or 5.25 sen per share a year ago, mainly due to lower domestic volume for certain models. 

Revenue for 2QFY16 fell 26.1% to RM48.3 million from RM65.36 million in 2QFY15.

For the six months period (1HFY16), Sapura Industrial posted a 74.3% decline in net profit to RM1.3 million or 1.78 sen a share from RM5.06 million or 6.96 sen a share in 1HFY15.

Revenue fell 13% to RM107.23 million from RM123.22 million. 

In a filing with Bursa Malaysia today, Sapura Industrial said moving forward, the group is cautious that market conditions will continue to be challenging for the automotive sector. Total industry volume is projected to grow by 2.1% to 680,000 units in 2015 from 655,465 units last year.

"As such, the group has intensified its efforts to further strengthen operational efficiency," Sapura Industrial added.

Trading in Sapura Industrial shares has been volatile over the past one year, which saw it fall to a low of 80 sen on Aug 24 this year, from a high of RM1.50 on Sept 22 last year.

Its share price closed down three sen or 3.12% at 93 sen today, with a market capitalisation of RM67.68 million. Year-to-date, the stock has lost 25.6%, underperforming FBM KLCI's 4.53% decline. 

(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.)