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SKP Resources posts eight-fold rise in Jan-March profit on strong demand

KUALA LUMPUR (June 3): SKP Resources Bhd saw an eight-fold jump in net profit to RM30.69 million or 2.46 sen per share in the fourth quarter ended March 31, 2021, from RM4.51 million or 0.36 sen per share a year earlier, driven by strong demand from key customers, as well as improvement in operational efficiencies and effective cost control measures.

The electronics manufacturing service (EMS) group said revenue was up by 4.44% to RM444.92 million, from RM426.01 million previously, on lower cost of sales.

In its filing with Bursa Malaysia, the group said the year-ago fourth quarter’s performance was affected by the mandatory closure of business operations that was implemented to curb Covid-19.

For the full financial year ended March 31, 2021 (FY21), SKP Resources' net profit surged 75.4% to RM128.32 million, from RM73.16 million in FY20, while revenue rose 24.98% to RM2.28 billion from RM1.87 billion.

On prospects, the group said it is strategically well positioned in the EMS industry and continues to pursue opportunities to grow its market share from existing customers.

“Notwithstanding the current market conditions, the group continues to receive enquiries from both existing and potential new customers for new projects.

“Prospects remain good and the board is optimistic and expects to achieve profit growth for the financial year ending March 31 2022,” it added.

SKP Resources shares rose four sen or 2.5% to RM1.64 today, giving the group a market capitalisation of RM2.56 billion. The counter saw 1.59 million shares traded.


This post has been edited by alexleow81: Jun 3 2021, 10:55 PM