Update Boustead’s 1Q net profit falls 33% y-o-y, declares 7.5 sen dividend

by **Cals** Tue 27 May 2014, 00:42

Update Boustead’s 1Q net profit falls 33% y-o-y, declares 7.5 sen dividend

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Monday, 26 May 2014 13:40

KUALA LUMPUR (May 26): Boustead Holdings Bhd's net profit fell 33% to RM66.7 million for its first quarter ended March 31, 2014, from RM99.9 million in the previous year’s same quarter.

Revenue for the quarter was slightly lower at RM2.50 billion, compared to RM2.53 billion in the year before.

The group declared a first single-tier interim dividend payment of 7.5 sen per share with its entitlement date on June 16, 2014.

The lower quarterly revenue was due to decreased revenue from Boustead’s pharmaceutical, property and heavy industries divisions which reported 6%, 23% and 30% fall in revenue respectively.

This was partly offset by higher revenue from the trading and industrial, and plantation divisions, where each reported 10% growth in revenue.

“The diversified nature of the group's businesses in six segments of the Malaysian economy augurs well for the group, and would enable the group to deliver a satisfactory set of results for the year under review,” said Boustead in its prospects.

The group said its pharmaceutical division’s earnings will be driven by the Ministry of Health concession business and the related manufacturing activities, while its plantation division will be supported by stronger CPO prices for the year.

For its property division, Boustead said the progress billings from on-going housing phases and rentals from its portfolio of investment properties will support its performance.

Meanwhile, its heavy industries division’s earnings will be largely derived from the Littoral Combat Ship project and on-going maintenance, repairs and operations (MRO) activities.

“We are fully conscious that consumer sentiment and inflation will have an impact on some of our divisions which have a direct interface with consumers.

“As for the divisions which are involved in business to business clientele, we are positive this segment will deliver organic growth.

“Above all, we look forward to the listing of Boustead Plantations Berhad which will be a major corporate undertaking during this financial year,” said Tan Sri Lodin Wok Kamaruddin, deputy chairman/group managing director of Boustead.