HeveaBoard's 3Q net profit jump more than twofold, pays 0.5 sen dividend

by **Cals** Wed 18 Nov 2015, 01:04

HeveaBoard's 3Q net profit jump more than twofold, pays 0.5 sen dividend

By Tan Siew Mung / theedgemarkets.com | November 17, 2015 : 7:17 PM MYT

KUALA LUMPUR (Nov 17): [size=16]HeveaBoard Bhd ([You must be registered and logged in to see this image.] Valuation: 1.80, Fundamental: 2.70) saw its net profit surge more than two-fold to RM18.12 million or 4.63 sen a share for the third quarter ended Sept 30, 2015 (3QFY15), from RM5.82 million or 1.53 sen a share a year ago, due mainly to better performance in the particleboard sector, resulting from higher sale and sale of higher value and value added products.

The higher earnings was also partly contributed from its ready-to-assemble (RTA) sector through continuous automation, despite being impacted by an unrealised exchange loss of RM10.23 million, due to the translation of the US dollar-denominated term loan in 3QFY15.

Revenue for 3QFY15 grew 29.5% to RM123.83 million, from RM95.66 million in 3QFY14.

The particleboard manufacturer also declared a second interim dividend of 0.5 sen per share for the financial year ending Dec 31, 2015 (FY15), payable on Dec 30.

The strong quarterly earnings pushed the group's net profit for the nine months period (9MFY15) by 123.2% to RM48.13 million or 12.3 sen a share, from RM21.56 million or 5.66 sen a share in 9MFY14.

Revenue for 9MFY15 jumped 14.4% to RM351.58 million, from RM307.25 million in 9MFY14.

On prospects, HeveaBoard said the global business environment is full of uncertainties and challenges, going forward.

"But the board of directors is of the opinion that with the particleboard sector continuing to focus on and developing higher value products, and the RTA sector continuing to embark on further automation and producing wider range of higher value products, the group should be able to manage the challenges ahead," it added.

HeveaBoard's shares closed one sen or 0.74% higher at RM1.36 today, bringing its market capitalisation to RM569.6 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.)
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