Hiap Teck posts net loss of RM5.2 mil in 3QFY15

by **Cals** Mon 29 Jun 2015, 20:49

Hiap Teck posts net loss of RM5.2 mil in 3QFY15

KUALA LUMPUR (June 29): Steel pipe maker Hiap Teck Venture Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) dipped into the red, reporting a net loss of RM5.2 million or 0.73 sen per share for the third financial quarter ended April 30, 2015 (3QFY15), compared to its net profit of RM13.57 million or 1.91 sen per share a year earlier.
The net loss reported was despite a 13% rise in quarterly revenue to RM335.05 million, from RM296.74 million in the previous year.
In its filing with Bursa Malaysia, Hiap Teck (fundamental: 0.35; valuation: 1.4) said the loss was “mainly due to share of loss of jointly controlled entity of RM12.47 million in the reporting quarter and a one-off provision for loss of inventories amounting to RM8.47 million as a result of the caving-in incident”.
Meanwhile, the better revenue performance for the quarter was attributed to higher sales volume by both its trading and manufacturing divisions during the period.
For the cumulative nine-month period, the company saw a net loss of RM8.43 million, from a net profit of RM34.92 million in the preceding year, while revenue climbed 14% to RM943.62 million from RM826.32 million.
Looking ahead, the group expects its trading and manufacturing divisions to post satisfactory performance for the remainder of its financial year, despite challenges ahead.
“The steel industry has been operating in a difficult environment and the recent depreciation of the ringgit against the major currencies further aggravated the challenges faced by the industry.
“However, the group is optimistic that demand for steel products in the domestic market will remain resilient with the ongoing major construction projects implemented by the government,” it said.
The group also said it will continue to strengthen productivity, efficiency and employ various cost control measures going forward.
Hiap Teck fell 0.5 sen or 1.19% to 41.5 sen, giving a market capitalisation of RM299.42 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.)