KNM 1Q net profit up 147% on Australian ops disposal

by **Cals** Thu 21 May 2015, 22:41

KNM 1Q net profit up 147% on Australian ops disposal

KUALA LUMPUR (May 21): KNM Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw its net profit surged 147.3% to RM35.05 million or 2.17 sen a share for the first quarter ended March 31, 2015 (1QFY15) from RM14.17 million or 0.97 sen a share a year earlier, due to the gain arising from disposal of Australia operating units and lower operating cost.
Revenue, however, fell 30.3% to RM344.38 million from RM493.9 million in 1QFY14.
In a filing with Bursa Malaysia today, KNM attributed the lower revenue to lower job progress recognition during the quarter.
Going forward, KNM said it is optimistic of the group’s performance for the remaining financial year ending Dec 31, 2015 (FY15).
"The (group's) Asia and Oceanic segment is expected to continuously improve its order book from the Pengerang Integrated Complex project (in Johor), while the European and Americas segment is expected to continue to be profitable," said KNM.
In February this year, KNM had entered into a sales and purchase agreement (SPA) to sell KNM Pty Ltd, its Australia-Indonesia based process equipment operations to Northfield Global Ltd for A$2.
Under the SPA, Northfield will take over all liabilities totalling A$18.73 million, while KNM will make a one-off gain of RM22.5 million.
KNM (fundamental: 0.85; valuation: 1.5) shares closed 0.80% or 0.5 sen lower to 62 sen today, with a market capitalisation of RM1.2 billion.
(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.)