Yee Lee 3Q net profit drops 25% on lower manufacturing, trading contributions

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KUALA LUMPUR (Nov 25): Yee Lee Corp Bhd’s net profit dropped 25% to RM6.02 million in the third quarter ended Sept 30, 2014 (3QFY14) from RM8.07 million a year ago, mainly due to lower contribution from its manufacturing and trading divisions.

In a filing with Bursa Malaysia today, Yee Lee said this was despite its associate Spritzer Bhd contributing higher profit of 17.4% to RM1.71 million during the quarter from RM1.46 million a year ago.

Revenue for 3QFY14 rose 5.8% to RM173.96 million from RM164.45 million a year ago. Earnings per share (EPS) was lower at 3.36 sen compared with 4.57 in 3QFY13.

For the nine-month period, Yee Lee saw its net profit fall 10.5% to RM22.5 million from RM25.1 million a year ago, while revenue grew 6.8% to RM523.8 million from RM490.3 million in 9MFY13. EPS stood at 12.52 sen from 14.22 sen a year ago.

Yee Lee said both its manufacturing and trading divisions recorded lower profit in 9MFY14, while its plantation division managed to turnaround.

Profit contribution from Spritzer was higher by 21.1% at RM6.02 million in 9MFY14 compared with RM4.97 million a year ago.

On current year prospects, Yee Lee believes that it will remain profitable for the financial year ending Dec 31, 2014.

Yee Lee shares closed unchanged at RM1.54, giving it a market capitalisation of RM278.2 million.