SCH banks on highway job to soften impact of slowing property mart

-A +A

KUALA LUMPUR (Jan 26): Quarry equipment distributor SCH Group Bhd's revenue may decline 20% in current financial year ending Aug 31, 2016 (FY16), due to the property market slowdown, managing director cum deputy chairman Lau Mong Ling said.

Lau said the property market slowdown already had an impact on SCH's business. He, however, said SCH was hopeful that the Pan Borneo Highway project would support SCH's business.

"Revenue may slowdown some 20% (this financial year), but hopefully Pan Borneo Highway project can help to improve the situation," he told reporters, after SCH's annual general meeting here today.

Despite the property market slowdown, Lau said the construction sector was still be robust, with the announcement of government projects like the mass rapid transit, light rail transit and Pan Borneo Highway contracts.

SCH's financials have weakened. FY15 net profit fell to RM6.46 million, from RM7.19 million a year earlier.

Revenue declined to RM59.65 million from RM65.42 million.

At 12:30pm, SCH was traded unchanged at 20.5 sen, for a market capitalisation of RM84.5 million. The stock saw 220,000 shares done.

(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.)