SKP Resources bags manufacturing contract for Dyson vacuum cleaners

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KUALA LUMPUR (Sept 14): Electronic and electrical equipment manufacturer SKP Resources Bhd has secured a contract from Dyson Ltd, for the manufacturing of the latter's cordless vacuum cleaners.

In a filing with Bursa Malaysia today, SKP said it expects the new contract to contribute “significantly” to its revenue for five years starting 2016, following the commencement of the contract in January 2016.

“The contract is expected to contribute positively to the group's revenue and earnings for the financial years ending March 31, 2016 and 2017,” said the company.

However, SKP did not disclose exactly how much the contract is worth.

SKP is currently one of Dyson’s contract manufacturers in Malaysia, assembling a range of Dyson products including upright vacuum cleaners, hand dryers and bladeless fans.

For the first financial quarter ended June 30, 2015 (1QFY16), the company reported a net profit of RM17.9 million, soaring 85% from RM9.6 million in the previous year’s corresponding quarter.

SKP shares gained 1 sen or 0.74% to RM1.36 at the midday break today, giving it a market capitalisation of RM1.46 billion.

(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.)