KUALA LUMPUR (Dec 18): SCGM Bhd, which manufactures thermo-vacuum form and vacuum plastic packaging, saw its net profit for the second financial quarter ended Oct 31, 2014 (2QFY15) rise 12.6% to RM3.04 million from RM2.7 million a year ago, mainly due to lower input costs.

The group also benefited from the drop in fuel and commodity prices, which boosted its profitability in 2QFY15.

Revenue for 2QFY15 increased by a marginal 0.38% to RM26.12 million from RM26.02 million in 2QFY14, as sales from year-end festivities offset the general slowdown in the domestic market.

Earnings per share (EPS) for 2QFY15 was at 3.80 sen, slightly higher than 2QFY14's EPS of 3.37 sen. 

SCGM also declared a second interim dividend of 5 sen per share for the financial year ending April 30, 2015 (FY15), payable on Jan 21, 2015.

In a statement today, SCGM chairman and managing director Datuk Lee Hock Seng said he is optimistic of ending FY15 on a positive note due to the group’s commendable 2QFY15 performance.

“For one thing, prices of key raw materials are expected to continue its downward trend next year, which will stabilise our input cost and mitigate the rising electricity tariff.

"[We] will also accelerate our market expansion efforts into new markets domestically and overseas, such as Japan and China, which would enable us to meet the anticipated demand from developed countries as they increasingly source quality flexible packaging from lower-cost countries in Southeast Asia,” he added.

For the six months period (1HFY15), net profit rose 14.7% to RM6.58 million from RM5.73 million a year ago, while revenue grew 3.1% to RM53.4 million from RM51.77 million in 1HFY14.

EPS for 1HFY15 was 8.23 sen from 7.17 sen a year ago.

SCGM shares closed up 7 sen or 4.19% to RM1.74 today, giving it a market capitalisation of RM138.4 million.