Subur Tiasa 4Q net profits up by 28%

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KUALA LUMPUR (Sept 30): Plywood, particleboard and sawn timber manufacturer Subur Tiasa Holdings Bhd saw its net profit increased by 28% to RM11.3 million in its fourth financial quarter ended July 31, 2014 (4QFY14), mainly due to the recovery in average selling prices across all segments of logs, timber products and crude palm oil (CPO).

Meanwhile, its full year net profit for financial year 2014 has more than doubled to RM38.75 million or 20.6 sen a share, from RM16 million in FY13, which was also attributed to the recovery of prices of its products.

In terms of revenue, the group’s 4QFY14 revenue had increased by 39% to RM244.3 million, while for the full year, revenue expanded by 15% to RM887.1 million.

“The improvement of overall results was mainly due to revenue growth from the logging, manufacturing and plantation segments,” said Subur Tiasa in its announcement.

The group said timber prices are not expected to experience any downside volatility moving forward, following a log export ban imposed by Myanmar in April and in view of the increased demand from the timber consuming countries.

“The demand for timber products will resume towards the end of the year, in anticipation of uptrend in construction activities from our major markets, and the logging and manufacturing segment will continue to be the main profit contributors,” said Subur Tiasa.

The group did not declare any dividends for the current financial year.

Subur Tiasa closed 3 sen or 1.36% higher at RM2.24 today, giving it a market capitalisation of RM421.4 million.