SKP's 4Q net profit up 37% on strong demand

by **Cals** Sat 30 May 2015, 00:57

SKP's 4Q net profit up 37% on strong demand

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By Chester Tay / theedgemarkets.com | May 29, 2015 : 10:09 PM MYT

KUALA LUMPUR (May 29): [size=14]SKP Resources Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw its net profit for the fourth quarter ended Mar 31, 2015 (4QFY15) rise 37% to RM11.31 million, from RM8.25 million a year ago, driven by strong demand in its plastic injection moulding segment.

Earnings per share improved to 1.26 sen, from 0.92 sen previously.

Group revenue was up by more than half (58%) to RM194.39 million, from RM123.29 million in 4QFY14, its filing to Bursa Malaysia today showed.

SKP Resources (fundamental: 2.1; valuation: 1.1) said the improved revenue was contributed by strong demand in its plastic injection moulding segment, as well as for value added services such as the assembly of plastic products and components for the electrical and electronics industry.

The improved quarterly earnings pulled up the company’s net profit for the cumulative 12 months (FY15) by 43% to RM42.02 million, from RM29.32 million in FY14; while revenue was up 49% at RM616.55 million, from RM412.77 million.

SKP Resources said it had marked another milestone recently, after securing a five-year RM400 million contract from its existing key customer, Dyson Ltd.

“On the back of this contract from Dyson, as well as strong order book from other existing customers, the board of directors expects [that] the group’s momentum of growth will continue, as it moves into an invigorating FY16,” it said.

SKP Resources’s counter fell two sen or 1.94% to RM1.01 today, for a market capitalisation of RM1.09 billion.

(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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