KUALA LUMPUR (April 23): WZ Satu Bhd registered net profit of RM5.11 million for the second financial quarter ended Feb 28, 2015 (2QFY15), with its mining and engineering businesses contributing to the bulk of earnings.

Meanwhile, revenue came in at RM86.37 million.

Earnings per share (EPS) for the quarter was 2.01 sen.

There is no year-ago comparison, due to a change in its financial year end from April 30 to Aug 31.

WZ Satu (fundamental: 1.7; valuation: 1.1) is involved in mining and oil & gas engineering procurement, construction and commissioning.

In the explanatory note, the group said most of its net profit were contributed by the mining business, followed by civil engineering, construction and oil & gas segment.

For the six months to Feb 28, 2015 (1HFY15), WZ Satu reported net profit of RM10.59 million on revenue of RM146.3 million.

EPS for 1HFY15 was 4.53 sen.

“The group expects its current year performance and profitability to be enhanced by the full year contribution from the civil engineering, construction and mining associate,” it added.

Earlier today at WZ Satu’s extraordinary general meeting (EGM), executive chairman and chief executive officer Tengku Uzir Tengku Ubaidillah said he hopes to see the group’s net profit for FY15 double, compared to a year ago.

The group posted a substantial jump in net profit to RM11.68 million for the 16-month consolidated financial period ended Aug 31, 2014.

The EGM saw shareholders approving the disposal of Weng Zheng Marketing Sdn Bhd for cash of RM6.1 million, to its managing director and substantial shareholders Tan Ching Kee.

"With this disposal, we are able to recoup about RM22.5 million, including intercompany borrowings, which Tan will reimburse back by taking over this company," Tengku Uzir told reporters after the meeting.

"This money will be very handy for the group. We are already in a net cash position of about RM40 million and this will serve to further enhance our balance sheet," he added.

As at Feb 28, 2015, WZ Satu’s deposits, cash and bank balances stood at RM95.71 million, according to its 2QFY15 balance sheet.

Net asset per share stood at 94 sen.

WZ Satu appreciated seven sen or 4.83% to RM1.52 per share today, giving it a market capitalisation of RM366.54 million.

(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.)