Hup Seng’s 4Q profit up 34.7% on Cream Crackers robust sale

by **Cals** Tue 10 Feb 2015, 20:17

Hup Seng’s 4Q profit up 34.7% on Cream Crackers robust sale

By Meena Lakshana / theedgemarkets.com | February 10, 2015 : 6:17 PM MYT

KUALA LUMPUR (Feb 10): Food company [size=14]Hup Seng Industries Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)’s made a net profit of RM12.6 million in the fourth quarter of its financial year ended Dec 31, 2104 (4QFY14), up 34.76% from RM9.35 million in the previous corresponding period.

Hup Seng (fundamental: 3; valuation: 1.3) attributed the growth in earnings to increased domestic and export sales on the back of robust growth in demand for its Cream Crackers.

According to a filing of the company’s 4Q14 results on Bursa Malaysia, revenue rose 10.4% to RM73.65 million compared to RM66.69 million in 4QFY13.

Year-to-date (YTD), its net profit rose 3.82% to RM38.15 million compared to RM36.75 million in FY13, while YTD revenue rose 4.3% to RM262.2 million compared to RM251.4 million in the previous corresponding period.

In its report, Hup Seng Industries noted that unlike the preceding quarter where festive seasons slackened its domestic demand, a significant increase in Cream Crackers sales in 4QFY14 contributed to higher sales volume.

The company expects 2015 to be challenging as it noted that “a faltering Eurozone and China, coupled with disinflation, will probably pose the biggest threat to the global economy this year”.

“Notwithstanding this, we will continue to build the competitiveness of our products and remain active in innovating our product portfolio,” it said.

Hup Seng’s counter closed unchanged at 90 sen today, for a market capitalisation of RM720 million.

[size=12](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]
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