KUALA LUMPUR (May 11) : Yee Lee Corp Bhd saw its net profit fallen 19.2% to RM7.4 million or 4.09 sen a share in the first quarter ended March 31, 2015 (1QFY15), from RM9.14 million or 5.13 sen a share a year ago, due to losses incurred by its plantation division.
Revenue for 1QFY15 however rose 2.86% to 177.97 million, from RM173.01 million in 1QFY14.
In a filing with Bursa Malaysia today, Yee Lee (fundamental: 1; valuation: 0.8) said profit contribution from its associated company, Spritzer Bhd, also fell by 38.4% in 1QFY15, mainly due to recognition of share-based payments for share options granted under its Employees' Share Option Scheme.
Going forward, Yee Lee said the growth momentum will likely ease this year, amid uncertainties in the global economy and domestic constraints.
"The introduction of the Goods and Services Tax (GST) on April 1, 2015 will likely to drive inflation higher and influence the consumers' spending behaviour.
“The group will continue to pursue initiatives to improve its operational efficiency and productivity, while exploring for business opportunity and expansion to drive growth,” it added.
Yee Lee added it had successfully secured the exclusive distributorship of Red Bull Gold, Red Bull Less Sugar and Red Bull Bottle energy drinks in Malaysia, which is expected to contribute positively to the group's future profitability.
“Barring any unforeseen and adverse circumstances, the board believes that the group will continue to remain profitable for the financial year ending Dec 31, 2015,” it said.
Yee Lee shares closed 0.5% lower at RM1.99 today, giving it a market capitalisation of RM364.89 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.)