Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Sept 20): Wong Engineering Corp Bhd (WEC) has proposed a 1-for-4 bonus amid a 47.46% drop in net profit for the third financial quarter ended July 31, 2018 (3QFY18), but a doubling of earnings for the cumulative nine months.

The company proposes to undertake a bonus issue of up to 22.92 million shares, which will be wholly capitalised from the share premium account of the company.

This will involve between RM11.42 million and RM11.46 million being capitalised, leaving the group with a remaining share premium of between RM650,000 and RM604,000, the company said in a stock exchange filing.

"After due consideration, the board is of the view that the proposed bonus issue is the most appropriate avenue of rewarding the existing shareholders of the company while at the same time enhancing the company's capital base," it said, adding the exercise is expected to be completed by the first quarter of 2019.

In a separate filing, WEC announced a net profit of RM1.6 million in 3QFY18 from RM3.05 million in the previous corresponding quarter, owing to a variation in product mix within the manufacturing segment and higher input costs.

US dollar exchange rates were also less favourable as compared to rates during the preceding year's corresponding quarter.

However, revenue spiked 55.11% year-on-year to RM18.4 million from RM11.86 million, contributed by domestic sales from manufacturing as well as construction and property segments.

For the cumulative nine months, net profit more than doubled to RM7.66 million from RM3.61 million last year, while revenue was 48.64% higher at RM44.49 million from RM29.93 million.

WEC closed unchanged at 94 sen for a market capitalisation of RM85.84 million.

      Print
      Text Size
      Share