The Klang Valley Mass Rapid Transit system (KVMRT) project under way is proving opportunities for construction players including Kimlun which specialises in tunnel claddings.
KUALA LUMPUR: Johor-based construction company Kimlun Corporation Bhd
reported a strong set of earnings for the financial year ended Dec 31, 2015 and also for the final quarter, boosted by higher gross profit margin of the manufacturing and trading divisions.
It posted FY15 earnings of RM70.70mil, up 58.5% from RM44.60mil a year ago. Its revenue was slightly lower at RM1.053bil from RM1.206bil.
“Gross profit of the group of RM122.95mil for the current period is 19.8% higher than the RM102.62mil in FY14,” it said.
For the fourth quarter, its earnings rose to RM21.40mil, up 132.2% from RM9.22mil a year ago. Revenue fell 19.1% to RM231.95mil from RM276.43mil. Earnings per share were 7.12 sen compared with 3.07 sen.
Kimlun announced a dividend of 5.8 sen a share compared with 3.8 sen a yerar ago.
Kimlun said had the profit after tax contribution of the land disposal of RM10.77mil been removed from FY14 results, the group had achieved a growth in profit after tax of 109.0% in the current period.
A lower revenue was recorded in the current quarter due to lower revenue achieved by the construction division, partly offset by the slight increase in revenue of other divisions.
A lower revenue was recorded in the current quarter due to lower revenue achieved by the construction division, partly offset by the slight increase in revenue of other divisions. For the Current Period, a lower revenue recorded was due to the lower revenue generated by all the active business divisions.
For Q4, FY15 and FY15, construction revenue fell RM52.56mil, or 22.6%, and RM100.09mil or 10.28% respectively compared to a year ago.
“The decline in construction revenue was mainly due to lower amount of balance orders in hand carried forward from FY2014 for execution in FY2015 vis-à-vis the amount of balance order in hand carried forward from FY2013 for execution mainly in FY2014,” it said.
Kimlun said For FY15, manufacturing and trading revenue declined by RM4.86mil or 2.4% compared to FY14.
It explained the decline in manufacturing and trading revenue was mainly due to lower revenue from the sale of segmental box girders (SBG) to the Klang Valley Mass Rapid Transit system (KVMRT).
The SBG sales orders were completed during the early part of FY15. The decline in SBG sales revenue by RM74 million was partly offset by a higher revenue generated from the sales of tunnel lining segments (TLS) and jacking pipes to Singapore and Malaysia markets.
“The group has an estimated construction and manufacturing balance order book of approximately RM940mil and RM170mil respectively as at Dec 31, 2015.
“The balance order book together with the estimated unbilled property sales value of RM11mil from the Hyve on approximately 80% take-up rate provides a good earnings visibility to the group.
“The board is optimistic that the construction sector of Malaysia and Singapore will continue to be vibrant in 2016, thus offer order book replenishment prospects,” said Kimlun.
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