Daibochi 4Q net profit falls 14% to RM5.9m

by **Cals** Thu 12 Feb 2015, 01:27

Daibochi 4Q net profit falls 14% to RM5.9m

By Ahmad Naqib Idris Adzman Shah / theedgemarkets.com | February 11, 2015 : 6:32 PM MYT

KUALA LUMPUR (Feb 11): [size=14]Daibochi Plastic and Packaging Industry Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw a 14% fall in its net profit for its fourth quarter ended Dec 31, 2014 to RM5.9 million from RM6.9 million in the previous year, due to higher operating costs, higher wages, and the electricity tariff hike in 2014.

However, revenue climbed 5% year-on-year to RM84.0 million from RM80.2 million, Daibochi’s filing with Bursa Malaysia today showed.

Daibochi (fundamental: 1.5; valuation: 0.9) also declared an interim single-tier dividend of 3.5 sen per share for FY14 – with an entitlement date on March 10, 2015 – to be paid on March 27.

Meanwhile, its full year net profit also fell 14% to RM23.7 million from RM27.5 million in FY13 due to higher prices of raw material even as its revenue increased 11% to RM344.5 million from RM310.3 million.

“The growth in sales was mainly from the increase in exports to multinational corporation (MNC) customers in the food and beverage sector, including to new MNC customers since the third quarter of 2013. Export sales contributed 50% of group revenue in FY2014, rising from 40% a year ago,” it said.

Going forward, the group is optimistic of posting better earnings for FY15.

“As the majority of our key raw materials are derivative products of crude oil, we anticipate the costs of raw materials to soften in view of the sharp decline in global crude oil prices since Dec 2014.

“In general, the company is expecting a positive impact to earnings in the current financial year due to the downtrend in the costs of raw materials,” it said.

Daibochi closed unchanged at RM4.63 today for a market capitalisation of RM526.2 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]