3A's net profit up 85% in 4Q

3A's net profit up 85% in 4Q

Written by The Edge Financial Daily
Tuesday, 23 February 2010 23:34


KUALA LUMPUR: THREE-A RESOURCES BHD [] (3A) saw its net profit rise 85.1% in the fourth quarter (4Q) ended Dec 31, 2009 to RM4.52 million from RM2.44 million a year earlier due to better demand for its products in the food and beverage manufacturing industry and higher margins, the group said in its results announcement to Bursa Malaysia today.

Revenue rose 71.54% to RM55.2 million compared to RM32.18 million a year earlier while profit before taxation is significantly higher at RM6.5 million compared to RM234,000 a year ago. The group attributed the improvement to higher turnover and better product margin.

Basic earnings per share (EPS) were 1.32 sen from 0.79 sen previously. No dividend was declared for the quarter under review.

On a sequential basis, the group's turnover of RM55.2 million was 22.3% higher than RM45.1 million recorded in the immediate preceding quarter. However, the profit before taxation for the current quarter of RM6.5 million is lower by 8% than that recorded in the immediate preceding quarter of RM7.06 million. The group attributed this to lower products margin recorded as the costs of raw materials rose in the quarter under review.

For the 12 months ended Dec 31, 2009, net profit was RM18.04 million, up 48.6% from RM12.14 million in FY08. Revenue increased 17.3% to RM178.58 million compared to RM152.25 million a year earlier while basic EPS was 5.7 sen compared with 3.9 sen previously.

The effective tax rate for FY09 was 23.9%, which is slightly lower than the statutory income tax rate of 25% as a result of utilisation of reinvestment allowance, the group explained.

As for its prospects, 3A said its products are expected to remain competitive.

"Despite the prevailing economic conditions, the directors anticipate that the group will achieve a satisfactory performance for financial year 2010," it said.

3A's share price has more than doubled to today's close of RM2.29 since its Oct 6, 2009 closing of 89.5 sen.

http://www.theedgemalaysia.com/business-news/160229-3as-net-profit-up-85-in-4q.html