ELK-Desa 3Q net profit up 23% on higher hire purchase receivables

by **Cals** Thu 12 Feb 2015, 19:06

ELK-Desa 3Q net profit up 23% on higher hire purchase receivables

By Yimie Yong / theedgemarkets.com | February 12, 2015 : 3:29 PM MYT

KUALA LUMPUR (Feb 12): Hire purchase company [size=14]ELK-Desa Resources Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)'s (fundamental: 2.3; valuation: 3) net profit rose 22.98% to RM4.84 million in its third financial quarter ended Dec 31, 2014 (3QFY15), from RM3.94 million a year ago, mainly due to an increase in the hire purchase portfolio.

Revenue for 3QFY15 rose 16.45% to RM14.35 million, from RM12.33 million a year ago; while earnings per share (EPS) was higher at 3.87 sen, from 3.15 sen in 3QFY14.

For the nine months period (9MFY15), ELK-Desa Resources saw its net profit grow 8.26% to RM13.65 million, from RM12.61 million a year ago.

Revenue increased 23.19% to RM43.13 million, from RM35.01 million a year ago. EPS was 10.92 sen, compared with 10.08 sen in 9MFY14.

On prospects, ELK-Desa Resources said the impact of the increased prices and cost of living, and the impending Goods and Services Tax (GST) on domestic consumers, remain a cause for concern.

"As a consequence, the group's profit will be affected by any prolonged delay in installment payments by the hirers, which will attribute to higher impairment allowances," it warned.

At 3.04pm, ELK-Desa Resources' share price was down 1.41% at RM1.40, with a market capitalisation of RM175 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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