Mudajaya sees 13-fold rise in 3Q profit on lower expenses, forex gain

by **Cals** Wed 25 Nov 2015, 23:28

Mudajaya sees 13-fold rise in 3Q profit on lower expenses, forex gain

By Supriya Surendran / theedgemarkets.com | November 25, 2015 : 9:56 PM MYT

KUALA LUMPUR (Nov 25): [size=16]Mudajaya Group Bhd ([You must be registered and logged in to see this image.] Valuation: 0.90, Fundamental: 0.35)'s net profit for the third financial quarter ended Sept 30, 2015 (3QFY15) was 13 times higher at RM14.34 million compared with RM1.07 million a year ago, thanks to the halving of its operating expenses, a twofold rise in its other income, and a foreign exchange gain of RM3.39 million.

It also saw a currency translation difference under its other comprehensive income section of RM4.97 million, compared to just RM770,000 in the previous year's corresponding quarter, its filing to Bursa Malaysia today showed,

Its 3QFY15 revenue, however, dropped 48.2% to RM108.15 million from RM208.66 million a year ago, as most of its existing construction projects were either completed or close to completion.

For the nine months ended Sept 30 (9MFY15), Mudajaya slipped into the red with a net loss of RM17.6 million, compared with a net profit of RM29.48 million a year ago, as the group's profitability for the period was adversely affected by additional costs recognised upon project finalisation, under its construction segment.

The group also saw a 55.6% decline in its 9MFY15 revenue to RM378.94 million, from RM854.06 million a year ago, due to weaker performance in its construction segment, and lower sales in its property segment.

Looking forward, the group said it will continue its strategy of building up assets that generate recurring income, in addition to its continued focus on its core construction and property businesses.

It also plans to expand on its precast concrete manufacturing businesses to capitalise on the increasing demand from various mega infrastructure projects.

Mudajaya shares slipped one sen or 0.83% today to close at RM1.19, giving it a market capitalisation of RM640.7 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.)
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