Magni-Tech 4Q net profit jumps 95% on higher garment sales

by **Cals** Wed 24 Jun 2015, 03:43

Magni-Tech 4Q net profit jumps 95% on higher garment sales

KUALA LUMPUR (June 23): Apparel and flexible packaging products manufacturer Magni-Tech Industries Bhd ([You must be registered and logged in to see this image.]Financial Dashboard) recorded a 94.7% jump in its net profit for its fourth financial quarter ended April 30, 2015 (4QFY15) to RM16.54 million or 15.24 sen per share from RM8.49 million or 7.83 sen per share in 4QFY14, mainly due to higher revenue and other operating income, as well as lower cost of sales for its garment business.
In a filing with Bursa Malaysia today, Magni-Tech saw an 8.8% increase in its 4QFY15’s revenue at RM176.73 million, compared with RM162.44 million in the same quarter a year ago, due to a 12% increase in sale orders for its garment business.
The company has recommended a final dividend of 3 sen per share, and a special dividend of 7 sen per share for FY15, subject to approval at its forthcoming annual general meeting (AGM) — the date of which, together with the relevant entitlement and payment dates, to be notified in due course.
The rate of the proposed dividend for the quarter ended April 30 is higher by 2 sen when compared with the rate of the dividend declared for the corresponding period in the previous financial year ended April 30, 2014 — due to “the encouraging financial performance of the group”, it said.
For its full financial year ended April 30, 2015 (FY15), Magni-Tech recorded a 24.2% increase in net profit to RM52.11 million or 48.04 sen per share, from RM41.95 million or 38.67 sen per share a year ago, which the group attributed to higher revenue and other operating and investment related income, as well as lower cost of sales for its garment business.
Revenue for FY15 also increased by 10% to RM716.38 million from RM651.27 million in FY14, thanks to higher sales orders received for its garment business.
On its future prospects, Magni-Tech said that the manufacturing and sales of garment will still be the its major revenue contributor, and that the company maintains a cautiously positive outlook for the forthcoming financial year amid the global economic uncertainty.
“Both the garment and packaging businesses are expected to remain profitable for the forthcoming financial year,” said Magni-Tech.
Magni-Tech (fundamental: 2.8; valuation: 2.4)’s shares closed unchanged at RM3.60 today, with a market capitalisation of RM390.56 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.)