Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 18): SCGM Bhd saw its net profit jump 38% to RM4.89 million or 6.1 sen per share for its first quarter ended July 31, 2015 (1QFY16), from RM3.54 million or 4.4 sen per share in 1QFY15, on a favourable product mix and foreign exchange gains from a stronger US dollar.

Revenue for the quarter rose 9% to RM29.63 million, from RM27.28 million in the previous year’s corresponding quarter, according to SCGM’s statement today.

The company declared a final single-tier dividend of 4 sen per share for the financial year ended April 30, 2015 (FY15), payable on Sept 18.

The group attributed the topline improvement to a 14% growth in its export sales to RM13.7 million from RM12 million, while domestic sales grew 5% to RM16 million, from RM15.3 million.

Going forward, it aims to further grow its exports to contribute more than half of its revenue within the next two years; in FY15, exports accounted for 46% of the group’s total revenue.

SCGM chairman and managing director Datuk Seri Lee Hock Seng said the group has been gradually increasing its exports to direct customers and distributors in Asia Pacific, while building the company’s track record for delivering high quality products.

“Now that we have commenced production of plastic cups since June 2015, we have a wider and complementary product range to fulfil the regional demand. Among the new markets we are selling our plastic cups to include Indonesia, Pakistan, Myanmar and the Philippines.

“Furthermore, the weaker Malaysian ringgit against the US dollar and lower input costs due to downtrending fuel prices enhance our competitiveness in the global arena. Therefore, the group is optimistic of achieving more than 50% revenue contribution from our export markets in two years,” he said.

At SCGM’s annual and extraordinary general meetings today, its shareholders approved a proposed bonus issue of 40 million new shares, on a basis of one bonus share for every two existing shares held.

“This bonus issue exercise, the first for the group, aims to not only reward our existing shareholders who have supported us since listing, but also to allow heightened retail participation and improve share liquidity,” said Lee.

SCGM (fundamental: 2.6; valuation: 1.7) closed unchanged at RM3.59 today, with a market capitalisation of RM281.6 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.)

 

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