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Thursday, January 19, 2017

Ajiya 4Q profit jumps 64% on higher operating profit

By Adela Megan Willy / theedgemarkets.com | January 19, 2017 : 7:45 PM MYT

KUALA LUMPUR (Jan 19): Ajiya Bhd saw its net profit for the fourth financial quarter ended Nov 30, 2016 (4QFY16) rise 64% to RM7.05 million or 4.68 sen per share from RM4.3 million or 5.64 sen per share a year earlier, due to higher operating profit.

In a filing to Bursa Malaysia today, the group said 4QFY16 revenue, however, fell 7% to RM100.54 million from RM108.15 million in 4QFY15, mainly due to weaker market conditions especially in the construction sector, which in turn affected demand for the group's products.

For the whole of FY16, Ajiya reported net profit of RM18.71 million, dropping 14.7% from RM21.95 million in FY15. Revenue too fell 7.3% to RM395.3 million from RM426.65 million in FY15.

On outlook, Ajiya said the government's Economic Transformation Programme (ETP), Economic Corridors, Green Building Tools as well as the Construction Industry Transformation Programme (CITP) will continue to boost demands for the building materials sector, which would then contribute positively to the group's turnover.

"We also expect our Ajiya Green Integrated Building System (AGIBS) to play a vital role in our growth trajectory and will continue to expand its market in Malaysia, Thailand and other Southeast Asian countries," it said.

Meanwhile, the group said the memorandum of understanding (MoU) signed together with Asia Roofing Industries Sdn Bhd and PT Baja Bahana Utama on May 31, 2016 to jointly explore business opportunities in Indonesia is ongoing.

Similarly, the MoU signed together with ARI Utara Sdn Bhd and IMAG Development & Construction Sdn Bhd to collaborate on securing and implementing projects to be awarded by PR1MA Corp Malaysia is still in full force.

Ajiya's share price closed 2 sen or 2.8% lower at 69 sen, valuing the group at RM213.21 million.

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