KUALA LUMPUR (Feb 16): SKP Resources Bhd’s net profit soared 95% to RM10.5 million for the third quarter ended Dec 31, 2014, from RM5.4 million in the year before.

Quarterly revenue jumped 71% to RM150.2 million, from RM87.8 million in the previous correpsonding quarter.

In its filing with the stock exchange, SKP (fundamental: 2.5; valuation: 0.3) attributed the year-on-year (y-o-y) improvement in profit to higher revenue from existing customers.

“The increase in revenue was contributed by the strong demand for the plastic injection moulding segment, as well as value added services such as assemblies of plastic products and components for the electrical and electronics industry,” said the company.

For the cumulative nine-month period, net profit climbed 41% y-o-y to RM30.7 million, from RM21.8 million; while revenue jumped 40% y-o-y to RM422.2 million, from RM302.2 million.

Going forward, SKP expects to remain profitable in its current financial year, supported by its strong orderbook and its expansion plan.

“The board is optimistic that with the strong existing business base, coupled with the expansion plan which was announced on March 28, April 2, May 14 that the company will be incurring approximately RM34 million capital expenditures to increase its production capacity, the group would be moving towards another promising year for the financial year ending March 31, 2015,” it said.

(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.)