KUALA LUMPUR (Nov 23): Oriental Interest Bhd saw its net profit for the first quarter ended Sept 30, 2015 (1QFY16) more than triple to RM9.75 million or 10.77 sen per share from RM2.59 million or 2.86 sen per share driven by its property development and general construction segment.
"This excellent performance was mainly contributed by a surge of 109% and 353% in progress billings and pre-tax profit respectively from property development, with much improved project margin," it said.
A hike of 79% and 88% in total billings and pre-tax profit respectively from general construction has also lifted its earnings for the quarter, according to its filing with Bursa Malaysia today.
Quarterly revenue almost doubled to RM67.13 million from RM34.13 million in 1QFY15.
No dividend was declared for the current quarter under review.
Oriental Interest is involved in property development and oil palm cultivation.
On its oil palm cultivation segment, Oriental Interest said although there was a drop in the price of crude palm oil compared with the corresponding financial quarter, a relatively higher increase in tonnage harvested cushioned the drop, generating a 40% increase in revenue and turned a marginal loss into pre-tax profit of RM43,000.
Looking forward, the group said concerns over continued depreciation of the ringgit and the ensuing inflationary effect on cost components leave businesses from various industries cautious about the economic outlook.
Oriental Interest said it has taken necessary strategic measures to chart a steady path in the property sector, hence it is confident that the results would continue to be profitable for the current financial year.
Shares in Oriental Interest closed two sen or 0.48% lower at RM4.15, for a market capitalisation of RM375.76 million.
Source: http://www.theedgemarkets.com/my/article/oriental-interests-1q-net-profit-triples-rm975m
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