KUALA LUMPUR (May 27): Engineering and construction firm Zelan Bhd's net profit for its first quarter ended March 31, 2015 (1QFY15) rose 44.75% to RM15.43 million or 1.83 sen per share, from RM10.66 million or 1.75 sen per share a year ago.  

It attributed improved earnings to higher gross profit, lower operating expenses and the application of group tax relief.  

Revenue was at RM88.01 million, up 15.64% from RM76.11 million in 1QFY14.  

Zelan (fundamental:1.1; valuation:0.9) told Bursa Malaysia that its engineering and construction segment recorded RM87.7 million in revenue for the quarter, versus RM75.7 million in the corresponding quarter last year.

"This was mainly attributed by local projects of RM63.9 million and the revenue from Meena project in Abu Dhabi of RM23.8 million," it explained.  

Revenue for property and development segment from rental income of office premises and car park bays for the quarter, was slightly higher than 1QFY14.

Zelan, a unit of MMC Corp Bhd, said its FY15 prospects remained positive, with stable earnings contributions from on-going projects.  

"We have taken positive steps to improve the group's performance, through continuous assessment of internal and external risks and implementation of strategies to control costs.  

"With the currents projects in hand, the performance of the company is expected to be satisfactory," it said.

Zelan closed one sen or 2.94% lower at 33 sen today, after being traded in a range of 32.5 sen and 33.5 sen, for a market capitalisation of RM287.26 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.)