Dancomech net profit at RM12.85mil in FY16 - Business News | The Star Online


Dancomech net profit at RM12.85mil in FY16

PETALING JAYA: Valves manufacturer Dancomech Holdings Bhd recorded a net profit of RM3.31mil on the back of RM14.02mil in revenue for the fourth quarter to Dec 31, 2016.

There were no comparative figures for the company that was only listed in July 2016.

The company declared a dividend of 1.5 sen for the fourth quarter, bringing full year dividends to 3 sen.

For the full year, Dancomech’s net profit was up 16.95% to RM12.85mil on the back of a 12.1% drop in revenue to RM60mil. Earnings per share was up to 9.5 sen from 8.84 sen previously.

In a filing to Bursa, Dancomech said that it will stay focused on its existing business plans and marketing strategies while also exploring new business opportunities that will enhance the growth of the Group.

On Jan 20, the company had proposed a share split, subdividing one ordinary share of 40 sen each into 2 new ordinary shares of 20 sen each.

It is also proposing an issue of 149 million free warrants on the basis of 1 warrant for every 2 subdivided shares held on the entitlement date after the proposed share split.

Dancomech was the best performing initial public offering (IPO) for 2016, with its share price almost doubling to RM1.49 from its IPO price of 75 sen.

It closed Thursday at RM1.44.

In Jan, the valves company announced that it was venturing into the business of pumps manufacturing. Dancomech is paying RM4.25mil to have its own pumps business along with a factory that produces the pumps.

Dancomech told Bursa that it is paying RM4.25mil to acquire Chun Khong Engineering Works Sdn Bhd, a company which owns a 99-year leasehold industrial land with single-storey industrial buildings in Perak.

Dancomech trades and distributes third-party brands along with its own brands.

However, it is able to differentiate itself from merely being a trading company because of its ability to garner maintenance contracts.