Wednesday, 30 November 2016
Perangsang Selangor Reports Stronger Revenue For The Third Quarter 2016, A Positive Sign To Its Recalibrated Investment Portfolio
- Key Highlights of Group current quarter results against corresponding quarter in
preceding year (Q3 2016 vs Q3 2015):
- Group revenue more than doubled, standing at RM35.49 million
- Group net loss1 declined, to a loss of RM24.22 million
- Key Highlights of Group year-to-date (“YTD”) results against corresponding period in
preceding year (YTD September 2016 vs YTD September 2015):
- Group revenue increased by 49% to RM79.97 million
- Group net profit1 was 209% higher, to RM126.69 million
- Earnings per share edged higher by 15 sen to 25.4 sen
- Net asset per share improved by 0.23 sen to 2.71 sen
KUALA LUMPUR, 30 NOVEMBER 2016 – Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or the “Company”), announced its financial results for Q3 2016 in which it posted Group revenue of RM35.49 million, more than double Q3 2015 of RM16.74 million. Significant improvement in the revenue was mainly due to higher revenue contribution from its Trading sector by 55% or RM8.54 million coupled with revenue from its newly acquired subsidiary in Licensing sector with revenue contribution of RM7.88 million.
The Group registered a net loss1 of RM24.22 million in the quarter under review against a loss of RM8.19 million last year. The downward trend in PBT between the quarters was mainly attributed to higher share of loss in its associate company, Syarikat Pengeluar Air Selangor Sdn Bhd (“SPLASH”) of RM19.65 million in Q3 2016 as compared to share of loss of RM0.594 million in Q3 2015 due to higher impairment of trade receivables and accounting treatment on IC12.
Commenting on the Q3 2016 financial results, Chief Executive Officer of Perangsang Selangor, Encik Ahmad Fariz Hassan (“Ahmad Fariz”) said, “This year Perangsang Selangor embarked on a recalibration of our investment portfolio through a targeted investment approach, with the addition of new business sectors that transcends the Selangor state and national borders. We are pleased with the improvements in revenue and profits from the Trading and Licensing sectors.”
The Trading sector posted a revenue of RM24.18 million Q3 2016 , higher by 55% compared to RM15.64 million last year as our subsidiary company, Aqua-Flo Sdn Bhd (“Aqua-Flo”) secured new contracts for the supply of chemicals.
Ahmad Fariz said, “The Licensing sector was newly consolidated into the Group following acquisition of Kaiserkorp Corporation Sdn Bhd, which owns the King Koil® mattress brand licensing business and related trademarks via its wholly-owned subsidiary King Koil Licensing Company Inc. In Q3 2016, the sector contributed a revenue and profit of RM7.88 million and RM2.58 million respectively with an impressive double digit margin of 33%.
The Infrastructure and Utilities sector reported a higher loss for the quarter in review due to higher share of loss from SPLASH. The continuous proportionate payment by Syarikat Bekalan Air Selangor Sdn Bhd (“SYABAS”) to SPLASH has resulted to higher impairment on SYABAS’ receivables, thus impacting our share of profit in SPLASH”.
Perangsang Selangor’s latest acquisition was in Century Bond Bhd (“Century Bond”), which became its subsidiary in November 2016. Century Bond is in a market leading position in cement packaging with a 60% market share in Peninsular Malaysia and presence in Indonesia Singapore and Thailand. The Company is currently undergoing a mandatory general offer (“MGO”) exercise to acquire the remaining shares in Century Bond it does not already own. As at 29 November 2016, the Company’s shareholding in Century Bond was 87.26%, a positive reflection of the progress of the MGO exercise.
Ahmad Fariz added, “On a positive note, as an investment holding company, we remain committed in upholding our mandate to create value for our shareholders through the business activities of our investee companies. We are excited to unlock the potential of our investee companies through the individual value creation plans established. At the same time, we shall continue to evaluate new business opportunities vis-a-vis our investment criteria with the ultimate aim to further bolster Perangsang Selangor’s financial and capital market performance.”
ABOUT KUMPULAN PERANGSANG SELANGOR BERHAD
Incorporated in August 1975, Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or the “Company”) is a public limited liability company and is currently listed on the Main Market of Bursa Malaysia Securities Berhad. The Company has a varied investment portfolio with assets involved in Infrastructure & Utilities, Oil & Gas, Telecommunications as well as Franchise Licensing. Perangsang Selangor 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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