Perstima’s 2Q net profit up 78%, pays 18 sen dividend

by **Cals** Tue 27 Oct 2015, 23:22

Perstima’s 2Q net profit up 78%, pays 18 sen dividend

By Ahmad Naqib Idris / theedgemarkets.com | October 27, 2015 : 6:15 PM MYT

KUALA LUMPUR (Oct 27): Higher sales and profit margin drove [size=16]Perusahaan Sadur Timah Malaysia (Perstima) Bhd ([You must be registered and logged in to see this image.]Valuation: 2.40, Fundamental: 2.35)'s net profit up by 78% to RM14.08 million or 14.18 sen per share for the second quarter ended Sept 30, 2015 (2QFY16), from RM7.92 million or 7.98 sen per share in the previous year.

Revenue for the quarter rose 5% to RM176.81 million, from RM168.59 million a year earlier, due to the same reason, according to its filing with Bursa Malaysia today.

The group also declared an interim single-tier dividend of 18 sen per share, payable on Dec 8.

Perstima said its Malaysian operations saw a 2% on-year increase in revenue, while profit before tax (PBT) rose to RM15.9 million from RM13.3 million in the previous year.

Meanwhile, its Vietnam operations recorded a 12% on-year growth in revenue, as the Vietnamese dong strengthened against the Malaysian ringgit; PBT for Vietnam more than doubled to RM8.8 million from RM3.4 million.

For the half-year period ended Sept 30 (1HFY16), net profit jumped 71% to RM23.39 million from RM13.64 million in 1HFY15, while revenue climbed 6% to RM335.16 million, from RM317.44 million.

Going forward, Perstima expects outlook on its environment to remain challenging, as more overseas imports makes its way into Malaysia, coupled with the volatility of the ringgit.

"Although these factors will affect the growth and profitability of the group, the management will continue with its cost saving measures and is confident that the profitability of the group for the financial year ending March 31, 2016 will be satisfactory," it said.

Perstima closed two sen or 0.4% lower at RM4.81 today for a market capitalisation of RM478.65 million.

Year-to-date, the stock has risen about 24.29%.

(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.)
[/size]