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Friday, March 24, 2017

Furniture maker Jaycorp's 2Q profit down

By Adela Megan Willy / theedgemarkets.com | March 23, 2017 : 6:35 PM MYT

KUALA LUMPUR (March 23): Jaycorp Bhd's net profit in the second financial quarter ended Jan 31, 2017 (2QFY17) contracted by 24.3% to RM4.63 million from RM6.11 million a year earlier due to lower operating profit, according to the company's filing with Bursa Malaysia this evening.

Jaycorp's revenue in 2QFY17, however, grew 5.4% at RM79.56 million from RM75.48 million in 2QFY16. The company's operating profit was lower at RM6.93 million versus RM9.12 million a year ago.

For the cumulative six months of FY17 (1HFY17), Jaycorp's net profit fell 12.7% to RM10.09 million from RM11.56 million in 1HFY16, whereas revenue was marginally higher by 1% at RM153.64 million versus RM152.17 million last year.

"The furniture industry remains the group's core business. The group will continue to focus on controlling cost structure and exploring new markets for products in order to achieve better profits and business growth," it said on outlook.

The furniture segment generated revenue of RM64.1 million compared with RM62.4 million, and profit before tax (PBT) RM7.9 million in the quarter under review compared with RM10 million a year ago.

The lower PBT was mainly due to a decision in January 2017 on additional bonus payments for the financial year ended July 31, 2016.

The kiln-drying segment, meanwhile, posted revenue of RM11.5 million and PBT of RM1.3 million as compared to revenue of RM9.4 million and loss before tax of RM40,000 a year earlier.

"The turnover and PBT for the current quarter were higher than the previous year corresponding period mainly due to higher turnover and improved market conditions," the group said.

The carton boxes segment contributed RM8.8 million in revenue and PBT of RM600,000 in 2QFY17 versus revenue of RM8 million and PBT of RM700,000 a year ago.

The renewable energy segment, on the other hand, contributed RM2.4 million in revenue and RM300,000 in PBT, from revenue of RM2.1 million and loss before tax of RM200,000 last year, on better operational efficiency and cost controls.

As for the engineering and construction segment, it posted revenue of RM600,000 and loss before tax of RM100,000 in 2QFY17.

Jaycorp's share price settled 0.7% higher to close at RM1.39, bringing its market value to RM190.1 million.

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