Hot Stock CSL rises 6% despite lower 1QFY14 earnings

by **Cals** Fri 01 Aug 2014, 02:05

Hot Stock CSL rises 6% despite lower 1QFY14 earnings

Business & Markets 2014

Written by Levina Lim of theedgemalaysia.com

Thursday, 31 July 2014 10:51

KUALA LUMPUR: China Stationary Limited (CSL) rose 5.88% to 9 sen at 10am, after it announced its financial results for the first quarter ended March 31, 2014 (1QFY14), and estimated losses from the fire that razed its factory yesterday.

It reached an intraday high of 9.5sen. 3.84 million shares exchanged hands.

A dealer told theedgemalaysia.com that the Practice Note 17 firm’s prospects were still positive despite the drop in revenue and net profit, as it still remains in the black.

“I am looking forward to the removal of its PN17 status since CSL has furnished its financial results for 1QFY14,” he said, adding that any further delay may cause “permanent damage” to CSL’s reputation.

CSL was categorized as a PN17 category after the firm’s external auditors put a “disclaimer opinion” in its financial statement for FY13. It said in a filing on July 9, that it intends to formulate a regularisation plan to address its PN17 status.

CSL announced yesterday a net profit of RM29 million for the first quarter ended March 31, 2014, 48.2% lower than the previous corresponding period. Revenue was 26.4% lower at RM163.3 million from RM221.89 million.

The fire that destroyed its factory in the Fujian province, China cost CSL 190.22 million yuan or RM98.07 million, after insurance claims have been made.

Two thirds of its 15,000 sq m factory, including the production floor, materials, finished and semi-finished products as well as administration office were razed.