Thursday, 30 November 2017
Kumpulan Perangsang Selangor Improves Profitability
- Posts RM12.9 million net profit in 3Q17 compared to RM24.2 million net loss a year ago, as all-round growth leads to 141% revenue boost to RM85.6 million
Kuala Lumpur, Malaysia, 29 November 2017 – Diversified group Kumpulan Perangsang Selangor Berhad (KPS, Bursa: 5843; Bloomberg: KUPS:MK; Reuters: KPSB.KL) continued to improve its financial performance, reporting 141% increase in revenue to RM85.6 million and RM14.7 million profit before tax (“PBT’’) in the third quarter ended 30 September 2017 (‘’3Q17’’) compared to RM35.5 million revenue and loss before tax of RM18.0 million a year ago.
Compared to the previous corresponding quarter ended 30 September 2016 (‘’3Q16’’), KPS noted steady expansion across all its business segments, reporting higher revenue in the trading and licensing segments, and new contributions from manufacturing and infrastructure and utilities segments.
The manufacturing segment which comprises cement packaging production under Century Bond Berhad (‘’CBB’’) raked in RM45.0 million or 52.5% of 3Q17 revenue, while the licensing segment under King Koil® Licensing Company Inc., (‘’King Koil®’’) contributed RM8.4 million or 9.8% of group turnover. The infrastructure and utilities segment via 51%subsidiary KPS-HCM Sdn Bhd reported revenue of RM2.5 million, its maiden revenue contribution since it became a subsidiary on 22 June 2017, from a 30% associate previously.
The trading segment through Aqua-Flo Sdn Bhd reported 8.7% higher sales of RM26.3 million compared to RM24.2 million prior on successful delivery of water chemical supply contracts. The balance RM3.4 million was derived from the investment holding and property investment segment.
Share of profits of associates reported a remarkable turnaround with RM20.2 million in 3Q17, from RM16.0 million share of associate loss a year ago, on higher contributions from Syarikat Pengeluar Air Selangor Holdings Berhad. On the Group’s forward strategy, KPS Chief Executive Officer Ahmad Fariz Hassan said:
“We are in the process of reorienting our business segments to emphasise expansion, be it in acquiring new customers and geographical markets, or improving our margins in a sustainable manner by moving up the value chain, strengthening operational efficiency or incorporating valueadded services.
At the same time, we are actively exploring further merger and acquisition exercises to strengthen the Group’s portfolio with fundamentally-strong businesses to continue propelling KPS forward in our transformation plan. Our current balance sheet with just 14.1% net gearing grants us sufficient financial dexterity towards this objective, while funding the growth plans of our existing businesses.”
For the nine months ended 30 September 2017, revenue rose 192% to RM238.3 million versus RM81.6 million in the corresponding period a year ago, on new contributions from CBB and King Koil®.
KPS’ core PBT increased 82.0% to RM74.6 million in nine months ended 30 September 2017 compared to core PBT of RM41.0 million (excluding gain of RM97.5 million on asset held for disposal) in the previous period. Core net profit gained 131.8% to RM67.7 million, versus RM29.2 million previously.
About Kumpulan Perangsang Selangor Berhad (www.kps.com.my)
Incorporated in August 1975, Kumpulan Perangsang Selangor Berhad (“KPS” or the “Company”) is a public limited liability company listed on the Main Market of Bursa Malaysia Securities Berhad. The Company has a varied investment portfolio with assets involved in Manufacturing, Trading, Licensing, Infrastructure and Utility, Oil and Gas as well as Telecommunications. KPS is committed towards making significant contributions to human capital, intellectual, and sustainable developments, whilst strengthening its core businesses to optimise returns for its shareholders.
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