PETALING JAYA: Kumpulan Perangsang Selangor Bhd maintained its net profit for the second quarter ended June 30, at RM34.67 million against the RM34.48 million recorded in the same period last year.
This was despite revenue increasing by almost three fold to RM75.95 million from the RM26.91 million registered last year, driven by revenue contributions from its manufacturing, trading and licencing businesses.
The manufacturing business of Century Bond Bhd acquired in November 2016 contributed about RM39.5 million to revenue. Higher expenses for the quarter however led to profit largely staying flat.
The group will be primarily focusing on its manufacturing segment for which it is also planning to enter into new product segments, such as paper packaging for minerals and other construction materials.
Besides that, it is also looking to gain by tapping into the increasing infrastructure and capital projects in the region.
The group which displayed a positive outlook on the infrastructure and utilities segment, is also confident in the long-term prospects of the oil and gas sector from which it expects an increase in demand for liquefied petroleum gas.
For the trading segment, in addition to the three new contracts bagged by its outfit Aqua Flo Sdn Bhd from PNSB Water Sdn Bhd, Konsortium ABASS Sdn Bhd and Konsortium Air Selangor Sdn Bhd, with a combined value of RM30 million– the division will continue to bid for contracts in the supply of water treatment chemicals and equipment segment.
Besides that, KPSB which is the licence holder for the King Koil brand, is also hoping to benefit from King Koil Licensing Company Inc’s (KKLC) future growth which is expected to stem from the expansion of direct distribution to its retailers and consumers in the US.
As for earnings in the first six months of the financial year under review, its net profit declined by 63.63% to RM54.88 million from RM150.91 million.
Revenue however, increased by more than three folds to RM152.70 million from RM46.10 million.
KPSB’s share price closed unchanged at RM1.30. It has a market capitalisation of RM648.7 million.
Source: The Sun Daily