SYF Resources' 1Q net profit doubles on higher property development revenue

by **Cals** Thu 17 Dec 2015, 00:44

SYF Resources' 1Q net profit doubles on higher property development revenue

By Ahmad Naqib Idris / theedgemarkets.com | December 16, 2015 : 6:34 PM MYT

KUALA LUMPUR (Dec 16): [size=16]SYF Resources Bhd ([You must be registered and logged in to see this image.] Valuation: 1.50, Fundamental: 1.10)'s net profit in the first quarter ended Oct 31, 2015 (1QFY16) has doubled year-on-year (y-o-y) to RM10.83 million, from RM5.15 million, mainly on higher revenue from its property development, and improved board sales and rubberwood furniture exports.

The stronger US dollar also boosted its performance, it said in its filing to Bursa Malaysia today.

Its latest quarterly revenue came in 58% higher y-o-y at RM94.92 million, from RM60.04 million.

Going forward, the group said it is not expecting improvement in economic conditions and so, will remain resilient in facing the challenges ahead.

“The downstream export furniture segment remains very competitive and efforts will continue in product development and customer retention.

"At the same time, cost containment will be an equally important task, in order to maintain profitability,” said SYF.

Meanwhile, for its upstream materials segment, the group is targeting to increase its exports of processed rubber wood materials to other Asian countries, especially China and India.

For its boards segment, it said the additional capacity in 2016 will be a catalyst for growth for the division.

As for property development activities, it expects these will continue contributing significantly to its results, driven by two new projects, namely Kiara Plaza and Wira Heights 3.

“In addition, a joint venture residential development in Sungai Long is being developed and will be launched in early calendar year 2016,” said the group.

SYF closed 2.5 sen or 4.55% higher at 57.5 sen today, for a market capitalisation of RM336.2 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.)
[/size]