KUALA LUMPUR (May 29): Sarawak Cable Bhd saw its net profit surge almost nine times to RM11.94 million in the first quarter ended March 31, 2015 (1QFY15), compared to RM1.36 million in the previous corresponding period, on higher revenue from its transmission line, cables and conductors segments.

This translates into earnings per share of 3.74 sen in 1QFY15, as compared to 0.49 sen in the previous corresponding period.

In a filing with Bursa Malaysia, Sarawak Cable (fundamental: 0.25; valuation: 1.4) saw its revenue jump four times to RM343.61 million in 1QFY15, as compared to RM79.21 million in 1QFY14.

In a separate filing, Sarawak Cable said it declared an interim single tier dividend of one sen per share for the financial year ending Dec 31, 2015, with the date of entitlement and payment to be announced.

In accompanying notes to its results, the company said the sales of cables and conductors segment contributed 49% of the total revenue of the group, versus 23% in the previous corresponding quarter, and was the main contributor to Sarawak Cable’s operating profit in 1QFY15.

Sarawak Cable said the segment recorded a revenue and profit before tax (PBT) of RM170 million and RM5.3 million respectively in 1QFY15, as compared to revenue and PBT of RM18.4 million and RM1.1 million respectively in 1QFY14.

The transmission line construction segment contributed 43% (1QFY14: 68%) of the total revenue of the group in 1QFY15, with segment revenue increasing to RM147 million in 1QFY15, as compared to RM54 million in 1QFY14, mainly due to on-going projects.

The sales of galvanised products and steel structures segment contributed 6% (1QFY14: 9%) of the total revenue of the group in 1QFY15, suffering a minor loss when compared to operating profit of RM0.8 million in 1QFY14.

Sarawak Cable said with its business strategies in place, there will be growth in the cables and conductors segment in the coming year. It said it remains positive that the transmission line segment will continue to improve, with the development plans for the power transmission industry.

Market demand for products under the steel products segment had shown improvement and the company is confident that the demand for galvanised products and steel structures will continue to improve, it added.

Sarawak Cable's share price closed one sen or 0.74% higher at RM1.37, with a market capitalisation of RM431.19 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.)