KUALA LUMPUR (Nov 29): Kumpulan Perangsang Selangor Bhd (KPS) posted improved earnings in its third quarter of the financial year 2019 (3QFY19), as the group registered a stronger contribution from its manufacturing businesses which incorporated the earnings of a new subsidiary, and a share of profit from associates.
Consequently, it recorded a net profit of RM6.67 million for the three months ended Sept 30, 2019, as compared with a net loss of RM274.57 million in the same quarter last year — when it recorded a share of loss from its associate Syarikat Pengeluar Air Selangor Holdings Bhd.
Revenue in the quarter under review grew 64.6% to RM252.95 million from RM153.64 million, which the group said was largely attributable to revenue from its new subsidiary Toyoplas Manufacturing (Malaysia) Sdn Bhd, which contributed RM73.9 million, as well as higher revenue from CPI (Penang) Sdn Bhd (up RM3.9 million), King Koil Manufacturing West LLC (up RM11.1 million), and Century Bond Bhd (up RM5.6 million).
For the nine months ended Sept 30, 2019 (9MFY19), the group posted a net profit of RM10.76 million, versus a net loss of RM223.05 million a year ago, while revenue grew 38.7% to RM569.57 million from RM410.76 million.
In a statement, managing director and chief executive officer Ahmad Fariz Hassan said he was encouraged by the group's performance.
"For the third consecutive quarter, we have reported steady earnings momentum. The financial results are in line with our expectations, seeing the expansion in revenue and operating profits flowing through stronger in the second half," said Ahmad Fariz.
He added that the group has made tremendous progress through the acquisition of Toyoplas, and that the acquisition has augmented its earnings base and provided greater earnings visibility. "With robust development plans in place for all our businesses, we are focussed on the continuum of the earnings momentum that we have been garnering thus far," Ahmad Fariz added.
Shares in KPS closed 2.78% or two sen higher at 74 sen yesterday, valuing the company at RM397.67 million. It saw some 280,500 shares traded.
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