KUALA LUMPUR (Feb 12): MPHB Capital Bhd saw its net profit for the fourth quarter (4QFY14) ending Dec 31, 2014, increased 24.64% to RM26.15 million or 3.66 sen per share, while revenue climbed 15.67% to RM100.83 million.
The group attributed its improved earnings to higher underwriting profit and investment income from the insurance division, aside of profit recognition from a property joint venture.
For the full year (FY14), net profit jumped to RM251.35 million or 35.15 sen a share, from RM48.25 million in FY13, due to better performance of the insurance division and the realisation of proceeds from properties disposal.
Meanwhile, full year revenue expanded to RM370.2 million, from RM246 million in FY13.
On prospect, the group expects the Malaysian economy to remain challenging due to the fall in commodity prices, as well as the weakening of ringgit.
For its insurance division, MPHB Capital said it expects the partnership with Generali Asia N.V, a 100% indirect subsidiary of Assicurazioni Generali S.p.A, to yield positive results in the near future.
Meanwhile, the group said it will continue to explore potential joint ventures with reputable property developers to develop its land bank, or it may dispose some of the land outright to create value for shareholders.
Shares of MPHB Capital closed 2 sen or 0.94% lower at RM2.10, giving it a market capitalisation of RM1.52 billion.
(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.)