Eng Tek Q1 earnings surge 250% to RM16.82m

KUALA LUMPUR: Eng Teknologi Holdings Bhd's
earnings surged 250.5% to RM16.82mil from RM4.79mil a year ago, boosted
by insurance proceeds and derivative gains of RM15.2mil, but the
hard-disk drive manufacturer expected prospects would improve.
It
said on Tuesday its revenue fell 14.4% to RM102.93mil from RM120.30mil.
Earnings per share were 13.8 sen compared with 4.0 sen. Profit before
tax (PBT) was RM17.9mil, by 220%.
"The revenue for the reporting
quarter was lower as the operations in Thailand, which is a significant
production centre for the group was still recovering from the effects
of the floods. Although, alternative plants from outside of Thailand
were used, it was not enough to fill up the lost capacities," it said.
Eng
Tek said PBT was significantly higher as there were insurance proceeds
received and derivative gains amounting to RM15.2mil. Without the
effects of the one off gains, the group PBT would be RM2.7mil.
On
the prospects, it said the rebuilding of the Thailand operations was
under way as scheduled. Alternative capacities, which were utilised
when the plants in Thailand were affected by the severe floods, had
started shipments to customers.
"The hard disk drive market is
expected to improve in its demand. For quarter four 2011, the global
shipments was only at 120 million units. It is expected to improve
further in subsequent quarters. Whilst the industry is recovering, Eng
Tek aims to regain its position as a significant component supplier.
This can be achieved once Thailand's operations have fully recovered,"
it said.

big lubang but investor bullish?

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