Minho's Q3 net profit down by 75% from lower revenue

KUALA LUMPUR: Minho (M) Bhd’s net profit for the third quarter financial year ended September 30, 2016, (Q3 16) plunged by 75% to RM1.11mil from RM4.37mil a year ago from lower revenue across some of the company’s business segments. 

In a filing with Bursa Malaysia, the company which is primarily a manufacturer and exporter of timber products, said  its revenue for Q3 16 fell by 1.7% to RM63mil from about RM64mil.

Minho’s all market segments registered lower revenue in the quarter except for the property development segment which saw an improvement of RM1.46mil in revenue.

However,the RM2.59mil total combined decline in the timber trading, manufacturing as well as services and treatment market segments, partially offset the property development segment’s rise of revenue. 

For the nine months, Minho’s net profit fell by 33.6% year-on-year to RM11.3mil while the revenue rose by 1.4% to RM212mil. The increase in revenue was driven by better contributions from the timber trading and manufacturing segments.

The improvement of RM6.53mil in the turnover for the manufacturing segment was mainly attributed to the improved demand for timber mouldings products and also to the better demand for cement bags. 

Meanwhile, the increase of RM4.63mil in the turnover of the timber trading segment was a result of improvement in the demand and higher average sellling price of rough sawn timber.

Earnings per share for Q3 16 fell by 87% to 0.5 sen from 3.96 sen previously. Minho projects a challenging operating conditions moving forward, amid the uncertainty blanketing the global economic environment.

“The Group will continue its measures on cost control strategies to mitigate against the rising cost of raw material and labour.

“In addition, the Group will also continue to enhance its operation and marketing strategies in order to achieve higher production efficiency and profit margin,” said Minho.