Boustead's 2Q net profit surges to RM226m on disposal gain, declares 4 sen dividend

KUALA LUMPUR (Aug 24): Boustead Holdings Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) surged to RM225.8 million from RM2.9 million a year earlier, mainly due to the gains on disposal of Jendela Hikmat Sdn Bhd and plantation land.

Its 2QFY16 revenue declined to RM2.07 billion from RM2.21 billion a year earlier.

Boustead declared a second interim dividend of 4 sen per share to be paid on Sept 30.

For the six months ended June 30 (1HFY16), Boustead's net profit jumped to RM204.3 million from RM3 million a year earlier, while revenue slipped to RM3.93 billion from RM4.1 billion a year earlier.

Reviewing its performance, Boustead said its plantation division's revenue was higher due to better palm products prices, while the pharmaceutical division's revenue rose 11% on the back of an increase in demand from government hospitals.

Meanwhile, it said the heavy industries division's revenue was lower due to weaker turnover from the air transportation segment.

It said the property division's revenue dipped on lower progress billings.

In a statement today, Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said a key contributor to the conglomerate's bottom line was the gains realised on the disposal of its stake in its associate company Jendela Hikmat as well as the sale of non-core plantation land.

"Most of our divisions also performed well, despite the challenging economic climate.

"This clearly demonstrates the Group's resilient focus on unlocking value within our business units, while leveraging on the strength of our diversified nature," he said.

Lodin said the property division was the biggest contributor with a higher profit of RM201 million for the first half of the year, on the back of a gain on disposal of Jendela Hikmat amounting to RM198 million.

"However, this was mitigated by a weaker performance by the hotel segment and unrealised foreign exchange loss," he said.

At 12.30pm, Boustead shares rose 2 sen or 0.9% to RM2.25, translating to a value of RM4.6 billion. — theedgemarkets.com

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