Pensonic’s 2Q net profit surges 358% on cost rationalisation

by **Cals** Wed 27 Jan 2016, 20:44

Pensonic’s 2Q net profit surges 358% on cost rationalisation

By Tan Siew Mung / theedgemarkets.com | January 27, 2016 : 6:28 PM MYT

KUALA LUMPUR (Jan 27): [size=16]Pensonic Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 3.00, Fundamental: 1.10)’s net profit rose 358% to RM2.74 million in the second quarter ended Nov 30, 2015 (2QFY16), from RM598,000 a year ago, mainly due to cost rationalisation implemented by management and gains from reversal of impairment for doubtful debts.

In a filing with Bursa Malaysia, the electrical home appliances manufacturer and distributor announced that its revenue for 2QFY16 also increased by 3.95% to RM91.45 million, from RM87.98 million.

For the cumulative half year ended Nov 30, 2015 (6MFY16), the group’s net profit surged 78.58% to RM4.99 million, from RM2.8 million a year ago, due to cost control measures, as well as gain from reversal of impairment for doubtful debts.

However, revenue fell 1.87% to RM190.39 million, from RM194.01 million, due to current adverse economic situation.

On prospects ahead, the group anticipates competition to remain intense. However, it will continue to explore new markets and product innovation, while maintaining excellent customer relationships, as well as placing emphasis on cost control, inventory management and overhead cost rationalisation.

In line with the group’s effort to expand into emerging markets, the group said it will carry on promoting and distributing its products to overseas customers, through engaging more overseas distributors and business partners.

The group will also continue to devote efforts toward research and development of new products, in order to keep up with the ever-changing needs of the electrical appliances markets.

“Given our extensive experience in the industry, the board believes that the group can overcome the temporary challenges in the market and remain competitive for the coming period,” it said.

Pensonic rose 3 sen or 4.55% to 69 sen today, for a market capitalisation of RM85.6 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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