- Separately, Signature announced that its net profit for the second quarter ended June 30, 2024 (2QFY2024) halved to RM10.5 million from RM20.66 million in 2QFY2023.
KUALA LUMPUR (Aug 27): Kitchen cabinet manufacturer Signature International Bhd (KL:SIGN) announced plans to list two of its subsidiaries on the ACE Market of Bursa Malaysia, on the same day it revealed that its latest quarterly net profit halved.
According to its bourse filings on Monday, Signature plans to list its renovation subsidiary Space Alliance Contracts Sdn Bhd (SACSB) and its interior fit-out business that focuses on commercial projects, Zig Zag Builders (M) Sdn Bhd.
M&A Securities has been appointed adviser and sponsor of the proposed listings, it said. Details have yet to be finalised with things still at the preliminary stage and preparatory work still ongoing, it added.
Chin Hin Group Bhd (KL:CHINHIN) controls Signature International with a 71.72% stake. The idea of floating Zig Zag Builders was first mentioned by Chin Hin managing director Chiau Haw Choon during an interview with The Edge last year.
Separately, Signature announced that its net profit for the second quarter ended June 30, 2024 (2QFY2024) halved to RM10.5 million from RM20.66 million in 2QFY2023.
While revenue rose 14.54% to RM203.37 million from RM177.56 million previously, it was not enough to offset the jump in operating expenses — which rose to RM177.22 million from RM156.94 million — lower share of profit of equity accounted associates (which dropped to RM2.5 million from RM5.2 million), lower other operating income (which dropped to RM2.37 million from RM9.74 million), and higher finance costs and tax expense.
Earnings per share dropped to 1.6 sen in 2QFY2024 from 3.3 sen in 2QFY2023. The group did not recommend any dividend for 2QFY2024.
For the first half of FY2024, its net profit dropped 31.1% to RM15.72 million from RM22.82 million a year before, even as revenue expanded by 32.97% to RM353.85 million from RM266.12 million.
On prospects, the group said its said its order book stood at RM1.16 billion as at end-June.
“We are optimistic that the group’s revenue and profit will improve in the next financial year based on the large number of order book on hand,” it said.
It is also dedicated to improving its gross profit margin by expanding revenue streams, reducing production costs and increasing production efficiency through the adoption of advanced technology.
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