TA Research expects the ongoing United States and China trade tension will continue presenting excellent opportunities to SKP.
KUALA LUMPUR: SKP Resources Bhd
SKP will remain vigilant amidst the challenging business landscape, where persistent inflationary pressures are increasing production costs.
The plastic manufacturer will carefully manage future orders and maintain a lean, highly efficient operating structure.
“We will continue to expand our printed circuit board assembly (PCBA), injection moulding and engineering capabilities to take advantage of a widened product assortment,” SKP said in a filing with Bursa Malaysia.
The group is also mindful of significant credit concentration risk that may arise from major customer and continuously seek to diversify its customer base.
Overall, despite the headwinds, SKP’s board is confident that the group will maintain its resilience by upholding a strong financial position at all times.
In the first quarter ended June 30, SKP’s net profit jumped 31.3% to RM28.3mil compared with RM21.6mil posted in the year-ago quarter.
Revenue rose 17.1% to RM505.5mil against RM431.6mil while earnings per share climbed to 1.81 sen from 1.38 sen achieved last year.
On July 26, the board declared and approved a final single-tier dividend of 2.92 sen per ordinary share, to be paid on October 24.
