Friday 29 Mar 2024
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KUALA LUMPUR (May 25): In contrast with the concerns on the slowdown in property market would hit demand for furniture fittings, Signature International Bhd recorded a net profit of RM13.39 million in the third quarter of the financial year ending June 30, 2015 (3QFY15), a jump of 225% from RM4.12 million a year earlier, due to higher revenue from kitchen and wardrobe segment and improved margin.

This translated to a higher earnings per share (EPS) of 11.2 sen, from 3.5 sen in 3QFY15.

Revenue increased 109% to RM87.54 million from RM41.9 million.

In a filing with Bursa Malaysia, it said the improved earnings was due to higher revenue from project division of kitchen and wardrobe segment and manufacturing of glass and aluminium products.

In another filing with Bursa, Signature (fundamental: 2.3; valuation: 1.5) has proposed first interim dividend of four sen per share for FY15, payable July 2, 2015.

For the nine-month period ended March 31, 2015 (9MFY15), Signature posted a net profit of RM32.25 million, up 256% from RM9.06 million on higher revenue and margins.

EPS for the nine-month period tripled to 26.9 sen from 7.6 sen.

Revenue rose 95% to RM217.97 million from RM111.83 million in 9MFY14. Project division of kitchen and wardrobe segment has been the main contributor to the increase.

Signature said it remains its focus on local project business which has been the strong pillar throughout these years, with kitchen and wardrobe segment remain the driving force for the group’s financial performance.

“The order book remain strong with the unbilled amount hovering around RM160 million from the constant replenishment of projects secured, moving along with the higher revenue being recognised from the job rapidly delivered to the sites,” it said.

Barring any unforeseen circumstances, the group is confident it will continue to deliver “satisfactory” performance in this coming financial year and is ready to maintain its dominance in the kitchen cabinet industry, it added.

Signature closed 21 sen or 8.11% lower at RM2.38, with a market capitalisation of RM285.6 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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