Kim Loong 4Q net profit drops 31%, pays 6 sen dividend

by **Cals** Fri 27 Mar 2015, 01:26

Kim Loong 4Q net profit drops 31%, pays 6 sen dividend

By Ahmad Naqib Idris / theedgemarkets.com | March 26, 2015 : 6:51 PM MYT

KUALA LUMPUR (Mar 26): Plantation company [size=14]Kim Loong Resources Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw its net profit drop 31% to RM13.73 million or 4.42 sen per share for the fourth quarter ended Jan 31, 2015, from RM19.84 million or 6.42 sen per share a year earlier, on lower revenue from its plantation operations.

Revenue for the quarter fell 8% to RM181.21 million from RM197.33 million a year earlier, the group’s filing to Bursa Malaysia today showed.

It also declared a final single-tier dividend of 6 sen per share in respect of the year ended Jan 31, 2015, to be paid on Aug 28, 2015.

“The lower revenue and profit for the current quarter as compared to the corresponding quarter last year was mainly due to lower production and FFB (fresh fruit bunch) price by 10% and 12% respectively. The low production in the current quarter was broadly in line with production trend nationwide,” said Kim Loong.

Its palm oil milling operations also saw a fall in profit and revenue for the quarter.

For the full year to Jan 31 (FY15), net profit was 23% higher at RM75.36 million compared to RM61.06 million in the previous year, while revenue jumped 21% to RM774.89 million from RM640.39 million.

Its two segments posted improved results for the year, due to better palm oil prices and FFB production for its plantation division, while its milling segment saw better processing margin and higher processing quantity.

Going forward, the group expects to post satisfactory performance for the financial year ending Jan 31, 2016, as it expects marginal improvement on FFB and crude palm oil production.

The group also expects palm oil prices to remain stable in the financial year ahead.

Kim Loong (fundamental: 2.8; valuation: 2.4) rose 2 sen or 0.72% to close at RM2.80, translating to a market capitalisation of RM867.95 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.)
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