BP Plastics 3Q profit quadruples on higher efficiency

by **Cals** Sun 15 Nov 2015, 02:05

BP Plastics 3Q profit quadruples on higher efficiency

By theedgemarkets.com / theedgemarkets.com | November 14, 2015 : 12:16 AM MYT

KUALA LUMPUR (Nov 14): [size=16]BP Plastics Holding Bhd ([You must be registered and logged in to see this image.] Valuation: 2.00, Fundamental: 2.50) saw its net profit for the third quarter ended Sept 30, 2015 jump more than fourfold to RM5.95 million from RM1.41 million a year ago, primarily on higher revenue and lower cost of sales.

Its revenue for the period came in at RM68.4 million, up 3.06% from RM66.37 million previously, its filing on Bursa Malaysia yesterday showed.

For the nine-month period (9MFY15), its net profit almost doubled to RM13.78 million from RM7.83 million in the same corresponding period last year, due to a better product mix and higher process efficiencies.

Revenue for the cumulative period was however lower by 5.55% at RM202.39 million compared with RM214.28 million in the same period a year ago, "due to weakened domestic market sales".

This was because of the impact from the implementation of the goods and services tax in April, and the increasingly competitive export market, said BP Plastics.

Going forward, BP Plastics anticipates that the gradual recovery of global economy from the US, UK and Europe would improve advanced nations' consumer disposable income and bring about a gradual increase in global demand for manufacturing goods as well as packaging consumption.

Hence, it will continue seeking opportunities for machine and product innovations, enhance its internal process efficiencies and productivity in the face of rising operating costs, and implement strategies to achieve higher sales, especially in export market.

It expects to deliver good profit for FY15.

BP Plastics closed 3 sen or 2.01% higher yesterday at RM1.52, giving it a market capitalisation of RM285.23 million. Year to date, the stock has doubled from 76 sen.

(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.)
[/size]