Friday, 29 May 2020
KPS records jump in 1Q net profit on broader earnings base
29 May 2020
KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd's net profit for the first quarter ended March 31, 2020, rose nearly two-fold to RM3.14mil from the previous corresponding quarter as revenue was bolstered by a broader earnings base.
In a filing with Bursa Malaysia, the group said revenue for the quarter jumped 49% year-onyear (y-o-y) to RM234.4mil as Toyoplas Manufacturing (Malaysia) Sdn Bhd was included in its investment portfolio following its acquisition last year.
Operating profit improved 36% to RM17.9mil from the previous corresponding quarter.
On a segmental basis, the manufacturing business contributed 75% higher revenue of RM185.1mil.
According to the group, Toyoplas led the revenue contribution with RM76.1mil. There was improved revenue recorded in CENTURY BOND BHD and King Koil Manufacturing West LLC, while CPI (Penang) Sdn Bhd posted a dip in contribution due to the Covid-19 disruption.
In the trading segment, Aqua-Flo Sdn Bhd registered a 26% y-o-y jump in revenue to RM32.7mil.
Meanwhile in the licensing business, King Koil Licensing Company Inc's revenue grew 8% to RM12.1mil due to steady traction from international royalty fees.
The infrastructure division however, experienced a fall in revenue to just RM1.8mil from RM14.2 mil previously as infrastructure works in Pulau Indah approached completion while it was also unable to secure sizeable pipe rehabilitation and replacement projects.
For its investment holding and property investments, the group recorded a contribution of RM2.7mil, mainly derived from net rental income at Summit Hotel KL City centre.
Moving forward, KPS managing director and group CEO Ahmad Fariz Hassan said the impact of Covid-19 on its business was mostly concentrated in March, while recovery was slow due to the disruption to the supply chain and reduced demand.
"Tasks ahead will require levels of responses and depth of resilience, focusing first on the aspects of operations that we can control in protecting the Group’s business amidst the challenging operating environment, be it locally or globally.
"Whilst maintaining our operational strength and financial capacity, we shall ensure KPS’ business continuity and remain diligent in executing our business plans, keeping the continuance of value creation across all our subsidiary companies," he said.