Tek Seng 3Q net profit jumps to RM3m

by **Cals** Fri 22 Nov 2013, 22:45

Business & Markets 2013

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Friday, 22 November 2013 18:01

KUALA LUMPUR (Nov 22): Tek Seng Holdings Bhd saw a huge jump in net profit to RM2.8 million for its third quarter to September 2013, from RM1.5 million in the previous corresponding quarter.

Revenue for the quarter rose to RM56 million in 3QFY13, compared to RM50 million in 3QFY12.

However, net profit for the nine months to September 2013 declined to RM3.8 million from RM6.6 million in the previous corresponding period. Revenue on the other hand, increased to RM153 million from RM146 million in 9MFY12.

“The major contributor of the group’s revenue was PVC sheeting, which contributed approximately 67.45% towards the current quarter,” said Tek Seng, while citing lower purchase costs for their improvement in revenue.

Tek Seng’s ‘sheeting’, ‘PP non-woven’, ‘PVC leather’ and ‘others’ segments had each posted profits, except for the ‘solar’ segment as it made a pre-tax loss of RM3.2 million due to high operating expenses.

Looking forward, the group is optimistic that it will have a stable performance for the remainder of 2013 as the solar segment has started to contribute to the group’s revenue.

Tek Seng also mentioned that it will take steps in mitigating the fluctuations in the price of raw materials which may affect its PVC segment.

“The group will also look into exploring new market share in the region,” said Tek Seng.