Engtex' 1Q net profit rises 29% to RM13.52 million

by **Cals** Thu 21 May 2015, 22:41

Engtex' 1Q net profit rises 29% to RM13.52 million

KUALA LUMPUR (May 21): Engtex Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) posted a net profit of RM13.52 million for its 1Q15 today — a 29.32% growth from its previous corresponding quarter (RM10.45 million). Revenue for the quarter was also up nearly 18% at RM3.06 billion (from RM2.6 billion a year ago).
In a filing to Bursa Malaysia today, Engtex said the first quarter’s growth was mainly driven by its wholesale and distribution division which recorded a net revenue of RM205 million, representing a growth of 19.7%. Other than that, the group also highlighted that its manufacturing division grew 13.1% for a net revenue of RM99.1 million.
The pipe manufacturing group attributed its first quarter success to the market’s interest in the sector.
“The increase in revenue and profit as compared to the preceding quarter ended Dec 31, 2014, was mainly due to the increased market demand for certain metal-related trading products and steel manufactured products.”
Moving forward, the group is remaining cautiously optimistic on its performance this year, which depends on the domestic demand and global economic environment.
“The performance of the group will continue to be affected by factors such as the volatility in the international and domestic metal prices, and the timely implementation of projects in the construction, utilities and infrastructure, and property development sectors. The group will continue to focus on expanding its existing product range for its wholesale and distribution division locally and abroad, and will improve and optimise its operating capacity in its manufacturing division.”
Apart from that, Engtex also expects its property division to contribute significantly from the completed and ongoing residential and commercial development projects in Selayang, and the new property development project in Kepong.
“The Malaysian economy is expected to remain on a steady growth path, with domestic demand remaining the key driver of growth, amid the lower oil prices,” it added.
Engtex share price closed 0.95% or one sen higher at RM1.06 today, giving it a market capitalisation of RM305.07 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.)