Friday, 29 May 2020

Kumpulan Perangsang's Q1 profit rises to RM3.14 mln



29 May 2020

KUALA LUMPUR, May 29 -- Kumpulan Perangsang Selangor Bhd's (KPS) net profit for the first quarter ended March 31, 2020 increased to RM3.14 million from RM1.17 million in the same period last year.


Revenue rose 49 per cent to RM234.4 million as compared with RM157.5 million previously, it said in a filing with Bursa Malaysia.


Manufacturing business recorded 75 per cent revenue growth year on year, contributing RM185.1 million to the group’s revenue as compared to RM105.6 million in the corresponding quarter last year.


“At RM185.1 million, the manufacturing businesses that comprise Toyoplas, Century Bond Bhd, CPI (Penang) Sdn Bhd and King Koil Manufacturing West LLC, contributed 79 per cent to the group’s revenue,” it said.


In a separate statement managing director/group chief executive officer, Ahmad Fariz Hassan said the impact of COVID-19 pandemic on KPS’ businesses and its subsidiary operations during the quarter was mostly concentrated in March 2020.


“The group is experiencing slow recoverability from the disruption in supply chain and reduced demand from customers in China, Indonesia, Malaysia and the US (United States) as manufacturing activities around the world declined.


“We shall continue to monitor the performance of the group's manufacturing businesses in the second quarter after which period better clarity on the impact of the pandemic can be assessed, once the end demand of our products reaches a new equilibrium,” he said.


KPS has planned for a range of business scenarios and have taken several risk mitigations.


For instance, operationally, it has communicated with the suppliers to ensure an alternative and more sustainable supply of raw materials, and with customers to better understand the requirements of their essential services under the current condition.


Ahmad Fariz said the subsidiary companies have also coordinated with the respective contract manufacturers for optimum production planning based on the limited production capacity.


“Financially, KPS has turned the strategic focus on austerity measures, maintaining adequate liquidity to support the group’s business as well as providing flexibility to weather the impact of the pandemic whose extent and depth are still uncertain,” he said.


Moving forward, he said tasks ahead will require levels of responses and depth of resilience, focussing first on the aspects of operations that the group can control in protecting its 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,” Ahmad Fariz added.