ECS ICT's 2Q earnings up 6.5% on higher sales

by **Cals** Wed 05 Aug 2015, 21:20

ECS ICT's 2Q earnings up 6.5% on higher sales

KUALA LUMPUR (Aug 5): Malaysia’s largest distributor of information and communications technology (ICT) products, ECS ICT Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), has reported a 6.5% increase in net profit for its second financial quarter ended June 30, 2015 (2QFY15) to RM8 million or 4.4 sen per share, on higher sales from its ICT distribution segment.
It saw a net profit of RM7.52 million or 4.2 sen per share in 2QFY14, its filing to Bursa Malaysia today showed.
Revenue for the latest quarter was at RM418.79 million, up 7.4% from 2QFY14’s RM389.92 million, due to higher sales from mobility products, namely tablets and smartphones.
For its first financial half ended June 30, 2015 (1HFY15), ECS ICT saw a 41.4% increase in net profit to RM17.39 million, from RM12.3 million a year ago, also due to higher sales in its ICT distribution segment.
The group’s 1HFY15 revenue was RM941.65 million, up 25.9% than its 1HFY14 revenue of RM747.64 million, due to higher sales, mainly from personal computers, notebooks, as well as tablets and smartphones.
ECS ICT (fundamental:2 ; valuation: 2.4) said although the implementation of the goods and services tax (GST) in April 2015 has dampened sentiments in the consumer market, new models of mobility products of smartphones and tablets, and the launch of Microsoft Windows 10, are expected to spur buying interest in the second half of 2015.
“While Enterprise Systems demand has been rather slow for both public and private sectors, due to economic uncertainties mainly caused by the substantial drop in ringgit versus the US dollar, we expect some significant projects to materialise during the second half of FY2015,” said the group.
ECS ICT's shares closed 0.65% higher today at RM1.56, giving it a market capitalisation of RM279 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.)