SYF 1Q net profit jumps 11% to RM5.15 mil

by **Cals** Wed 10 Dec 2014, 03:36

SYF 1Q net profit jumps 11% to RM5.15 mil

By Sulhi Azman / theedgemarkets.com | December 9, 2014 : 10:08 PM MYT

KUALA LUMPUR (Dec 9): Furniture manufacturer SYF Resources Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw its net profit for the first quarter ended Oct 31, 2014 (1QFY15) rose 11% to RM5.15 million or 1.72 sen per share from RM4.64 million or 1.7 sen per share a year ago, on better selling price of its particle board and the strengthening of the US dollar.

Revenue, however, dipped 3.3% to RM60.04 million from RM62.09 million previously on lower export sales, its filing with Bursa Malaysia this evening showed.

On a segmental basis, rubberwood furniture contributed 78% to the group's revenue in 1QFY15, followed by its particle board business (13%) and property development (9%).

On its outlook, SYF said the furniture market is expected to remain stable with the recovery in the US market.

"We will continue to focus on our strength in materials processing to extract higher recovery of raw materials for our range of products. The planned addition of a second line in the board segment forms part of this strategy.

"At the same time, we will explore higher value-added products for parts of our boards production capacity," the group said in a filing with Bursa Malaysia this evening.

As for its property development business, SYF said the softening market will affect the take-up rate of new project launches.

"In addition, the forthcoming implementation of the Goods and Services Tax (GST) may further affect purchasing power and consumer confidence. In recognising these conditions, we have placed more emphasis on the planning and conceptualisation stage in order to come up with the right product before launching our new projects," the group added.

[size=14]SYF shares closed 2.11% lower to 46.5 sen today, giving it a market capitalisation of RM 284.05 million. [/size]