KUALA LUMPUR (May 29): XingHe Holdings Bhd reported its third-consecutive quarter of profit for the three months ended March 31, 2015 (1QFY15), posting a net profit of RM41.95 million or 1.79 sen per share compared with a net loss of RM4.41 million or 2.97 sen loss per share a year ago on higher average selling prices of branded products and non-branded products.

Its gross profit margin for the quarter under review improved to 17.5% from 15.8% in 2014.

The China-based edible vegetable oil and peanut protein cake producer posted a revenue of RM388.24 million for 1QFY15. XingHe (fundamental: 1.2; valuation: 0.9), however, did not disclose revenue in the previous corresponding period as it had changed its financial year-end from Jan 31 to Dec 31.

In a filing with Bursa Malaysia today, XingHe said it is optimistic that it will be able to deliver a satisfactory performance for the current financial year ending Dec 31, 2015.

For one, it is confident that the rising disposable income and standard of living in China, as well as the increased health awareness among consumers will create a robust demand for high quality branded edible oil.

"The group’s marketing and branding campaigns to expand further its existing markets and to strengthen its market presence and brand recognition are bearing fruits.

"Volume sold, average selling prices and gross margins for 1QFY15 were higher than those achieved in 2014," it added.

The group also noted that the difference between the ringgit and renminbi, if maintained, will benefit it.

XingHe shares closed unchanged at 7 sen today, with a market capitalisation of RM164.4 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.)