Posted by Jimmy Song > 2014-08-29 09:44 | Report Abuse

WEIDA (M) BHD ANNOUNCES Q1 RESULTS Credible start for FYE2015 PETALING JAYA, 28 AUGUST 2014 – WEIDA (M) Bhd (“Weida” or the “Group”), today announced its first quarter results for the period ended 30 June 2014 (“Q1FYE2015”) with a revenue amounting to RM69.2 million. This marks a respectable start for the financial year ending 31 March 2015 (“FYE2015”) towards the Group’s quest to exceed the revenue achieved in the previous financial year (“FYE2014”). Similarly, the profit before tax (“PBT”) of RM6.1 million is a credible start for FYE2015. The Group’s manufacturing segment reported a RM2.7 million increase in revenue to RM50.2 million for the quarter as compared to preceeding quarter (“Q4FYE2014”). This resulted in a 54.1% increase in the earnings contributed by this segment for the quarter compared to the preceding quarter. The increase in the performance of the Group’s manufacturing segment was due to increased demand from government projects during the quarter. The Group also achieved better profit margins due to the product and customer mix during the period. The Group’s works segment comprising telecommunication towers, water, wastewater treatment and other infrastructure contributed lower segmental revenue and profit due to lower progress claims on construction works of certain projects, which are nearing completion, and also due to the fact that some projects were completed in the last financial year (“FYE2014”). The Group is optimistic that being a leading player in East Malaysia, they will be well positioned to capitalise on the Malaysian Communications and Multimedia Commissions’s (“MCMC”) plans to roll out the next phase of telecommunications infrastructure construction soon. The Group’s property segment registered declined revenue and profit against Q4FYE2014. In the preceding quarter, revenue and profit contribution from the property segment comprised of the initial revenue recognition based on percentage of completion of works and sales achieved from the Group’s maiden property project, Urbana Residences. Urbana Residences is at its initial development stage and construction works and the project is progressing smoothly and is on schedule. Furthermore, the Group is actively preparing to launch its next property development project which resulted in higher overheads during the quarter under review. “We believe that we are on track to deliver Urbana Residences to our property buyers by 2nd Half of 2016. Our next property development project will be a RM330 million GDV residential development called Ardena in Mont Kiara, Kuala Lumpur. We are also planning to embark on more residential developments within the Klang Valley in the near future.” commented the Group Managing Director, Dato’ Lee Choon Chin. “Building up a premier property development arm is in line with WEIDA’s strategy to achieve continuous growth in a balanced and sustainabile manner. We also believe that the upcoming Sarawak Corridor of Renewable Energy and the Sabah Development Corridor will result in lucrative opportunities that the Group can capitalise on in the foreseeable future.” Continued Dato’ Lee Choon Chin. The Group’s balance sheet remains very healthy with total shareholders’ equity of RM362.4 million and a formidable cash balance of RM241.1 million. The Group is currently in a net cash position due to its relatively low borrowings. The net asset per share is RM2.79 as at 30 June 2014.