Tomei 1Q net profit up 33% on higher sales volume, margins

by **Cals** Tue 19 May 2015, 22:21

Tomei 1Q net profit up 33% on higher sales volume, margins

KUALA LUMPUR (May 19): Tomei Consolidated Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) posted a 33% rise in net profit to RM5.46 million or 3.94 sen per share for its first quarter ended March 31, 2015 (1QFY15) from RM4.1 million or 2.96 sen per share a year earlier, thanks to better sales volume and improved gross margin due to sales of higher margin products.
Revenue climbed 8% to RM169.62 million from RM157.37 million in 1QFY14.
Segmentally, Tomei’s (fundamental: 0.15; valuation: 1.2) retail segment saw higher revenue and profit, which was attributed to increased sales volume ahead of the goods and services tax (GST) implementation in April 2015.
Meanwhile, the group’s manufacturing and wholesales segment saw a slight decline in profit in 1QFY15 due to lower gross profit margin for the quarter.
Looking ahead, Tomei expects the remainder of its financial year to be challenging, as consumer sentiment is dampened by the GST implementation and the decline in oil prices and commodities.
“In view of this development, the board expects the current financial year to remain challenging. To mitigate the impact, the group is constantly reviewing its operation with a view to reduce cost and maximise productivity,” it said.
Tomei shares closed 0.5 sen lower at 54.5 sen today, bringing its market capitalisation to RM76.23 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.)