TA Enterprise, TA Global tumble on 4QFY15 net losses

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KUALA LUMPUR (Apr 1): Shares of TA Enterprise fell as much as 6.67% to 70 sen in the morning trades after incurring a net loss of RM33.28 million in its fourth quarter ended Jan 31 this year (4QFY15), as compared with a net profit of RM29.21 million a year ago.

At 10:26am, its counter pared some losses to settle 5.33% lower at 71 sen, with some 1.77 million shares changing hands.

Similarly, its unit TA Global Bhd had fallen 3.12% to 31 sen as at 10:26am, with some 444,500 shares traded. This was after it reported a net loss of RM2.51 million in 4QFY15, compared with a net profit of RM50.45 million a year ago.

TA Enterprise said in an announcement with Bursa Malaysia yesterday that it has fallen into the red for its fourth financial quarter ended Jan 31, 2015 (4QFY15). It registered a loss per share of 1.94 sen a share in 4QFY15 from an earnings per share (EPS) of 1.71 sen a share.

Revenue for 4QFY15 fell 18% to RM232.03 million from RM281.68 million a year ago.

For the full FY15, TAE (fundamental: 1; valuation: 3)’s net profit fell 29% to RM96.69 million from RM137.03 million in FY14, despite a 12% climb in revenue to RM979.50 million from RM870.73 million.

In a separate announcement with Bursa yesterday, TA Global Bhd (fundamental: 1.05; valuation: 2.4) said its revenue fell 22% to RM180.02 million from RM231.76 million.

TA Global reported a 9% rise in net profit to RM144.93 million for FY15 from RM113.45 million in FY14, while revenue climbed 9% to RM757.81 million from RM692.42 million.

Going forward, TA Enterprise said that it maintains a challenging outlook on the domestic economy in view of slower export growth, lower investments in oil and gas (O&G) industry due to the decline in oil prices, and an anticipated moderate private consumption following the implementation of the goods and services tax.

TA Enterprise also expects lower income contribution from overseas and local property investments in its current financial year for its property investment division, due to upgrading works for some of its investment properties.

(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.)