Sapura Resources' 1Q net profit contracts 82%

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Sapura-Resources-Bhd

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PETALING JAYA (June 25): Sapura Resources Bhd’s net profit slumped 82.15% in its first quarter ended April 30, 2015 (1QFY16) to RM291,000, compared with RM1.63 million last year, due to “higher finance cost” related to a loan for the acquisition of a 50% stake in Impian Bebas Sdn Bhd.

This caused its earnings per share to drop to 0.21 sen per share, from 1.17 sen per share in the previous corresponding quarter, its filing to Bursa Malaysia today showed.

Its revenue for the quarter, however, was up 5.76% to RM10.04 million, from RM9.5 million in 1QFY15, due to higher revenue registered in its property investment segment.

To recap, on April 20, Sapura Resources had announced that its jointly-controlled unit IBSB had accepted financing facilities granted by Maybank Islamic Bhd, Public Bank Islamic Bhd and RHB Islamic Bank Bhd, of up to RM1.08 billion.

“The purpose is to finance up to 80% of the total construction costs and land costs of the proposed construction and development of a premier office tower, a convention centre, a retail podium and basement carpark located at Lot 91, Kuala Lumpur,” it had said then.

Moving forward, Sapura Resources said it recognises the challenging environment that it is in, but said its board of directors remain confident that the prospect for the longer term will be positive.

Sapura Resources (fundamental: 1.7; valuation: 3) closed unchanged today at 87.5 sen per share, for a market capitalisation of RM119.52 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.)