KUALA LUMPUR (June 22): O&C Resources Bhd posted a net profit of RM1.07 million for its third quarter ended April 30, 2017 (3QFY17), compared with a net loss of RM1.33 million a year earlier.

This is the third consecutive profitable quarter for the plastic and rubber products manufacturer-turned-property developer, and was mainly due to higher profit contribution from its construction segment.

Revenue jumped 172.64% to RM23.44 million, from RM8.6 million in 3QFY16, due to an increase in progressive recognition of revenue from its construction segment, O&C Resources said in a Bursa Malaysia filing yesterday. 

Revenue from the construction segment rose RM14 million year on year, the filing added. 

Also on the up is its trading segment, which saw revenue contribution increase by RM1.6 million, as a result of more active trading of its electrical and mechanical products.

Meanwhile, contribution from the group’s condom and baby products manufacturing segment dipped by another RM400,000 year on year, no thanks to lower sales.

With a third consecutive profitable quarter, O&C Resources is en route for its targeted turnaround in FY17, after a loss-making FY16. 

For the first nine months of FY17, net profit stood at RM2.35 million as against a net loss of RM732,000 in FY16. Revenue rose 123.86% to RM64.16 million, from RM28.66 million.

Looking forward, O&C Resources' plans to strengthen its position in the medium-to-long term, will be heavily dependent on its newly-forayed construction and property development business. The group has in hand, eight property projects split between Melaka, Pahang, Selangor, Kuala Lumpur and Negeri Sembilan.

“Through efforts such as brand building and business development activities in future, we hope the market will be aware of the existence of a new niche construction and property player making waves in the Klang Valley,” O&C Resources said, adding it will at the same time maintain its trading and manufacturing business.

Shares of O&C Resources were last traded 1 sen or 1.59% higher at 64 sen, giving the group a market capitalisation of RM151.9 million. Year to date, the counter has gained 43.82%. — theedgemarkets.com

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