Oriental Holdings 2Q net profit up 14.4%, pays 6 sen dividend

by **Cals** Thu 20 Aug 2015, 20:35

Oriental Holdings 2Q net profit up 14.4%, pays 6 sen dividend

GEORGE TOWN (Aug 20): Penang-based Oriental Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), owned by the family of the late tycoon Tan Sri Loh Boon Siew, reported a 14.4% rise in second quarter net profit to RM59.05 million or 9.52 sen per share from RM51.6 million and 8.32 sen per share a year ago, on higher contributions from its automotive and plantation segments.
Revenue for the three months ended June 30, 2015 (Q2FY15) grew 18.1% to RM1.05 billion from RM889.26 million in Q2FY14.
Oriental Holdings also declared an interim dividend of 6 sen totalling RM37.2 million for the financial year ending Dec 31, 2015 (FY15), payable on Nov 17.
For the six months period (6MFY15), the group posted a 9.5% increase in net profit to RM114.95 million or 18.53 sen per share from RM121.33 million or 19.56 sen per share a year ago.
Revenue jumped 20% to RM1.9 billion from RM1.62 billion in 6MFY14, driven by its automotive segment as it sold higher units of car.
The revenue for the plantation segment decreased by 20.1% mainly from lower crude palm oil (CPO) and palm kernel (PK) selling prices by 9.4% and CPO and PK sales volume by 11% compared with the corresponding period last year.
In a filing with Bursa Malaysia today, Oriental Holdings said its performance for FY15 is expected to be "a respectable one" given the current global economic condition, with the automotive segment continuing to contribute to the group’s performance under "very competitive" market conditions.
"With the expansion into multi-brands dealership in the late 2014, this will enable the group to wider array of motor vehicles to meet the diverse and discerning needs of end consumers with expectation to yield positively.
"The automotive segment will also continue to expand and upgrading its showrooms and service centres including boosting its presence in Sabah and Sarawak.
"The plastic segment remains to face stiff competitive environment among the local industry players. The segment will continue to improve its performance," said the group.
Oriental Holdings added that its plantation segment will continue to consolidate the present land bank and to diversify into real estate via the recent Melbourne, Australia properties acquisition.
"The hospitality segment is expected to maintain on its profitability with improved operational execution through various organic measures, (while) the investment properties segments will continue to reclaim its remaining 415 acres in Melaka and to unlock the value of the land bank for future developments.
"With the commencement of Melaka’s hospital in late January 2015, the group is expected to gain strong corporate reputation via Oriental Medical Centre as a reliable, affordable healthcare provider with its 300 beds and eight levels facilities," said Oriental Holdings.
Oriental Holdings (fundamental: 2.5; valuation: 2) shares were traded 0.76% down during the morning session at RM6.56 with 36,000 shares done, giving it a market capitalisation of RM4.1 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.)