SUIWAH (9865) - Suiwah Q1 profit falls 32%
Saturday, 18 October 2014
PETALING JAYA: Suiwah Corporation Bhd’s earnings fell 32.2% to RM2.28mil for its first quarter ended Aug 31, 2014, mainly due to its manufacturing arm which suffered lower sales and margins as a result of market competition.
Its revenue rose 6.5% to RM98.12mil from RM92.12mil a year ago while earnings per share were 3.98 sen compared with 5.88 sen.
In a filing with Bursa Malaysia, it said its retail arm had achieved a 34.1% increase in pre-tax profit due to higher sales and rental income, contributed by its new retail outlet in Bertam, Penang.
Its property investment and development business recorded a 358.8% jump due to additional rental income received and lower operating expenses incurred from its property investment arm.
Suiwah said the Goods and Services Tax (GST) was expected to have immediate term impact on its financial performance once it kicked off on April 1, 2015.
It said the GST would further pressure the cost structure, not just in terms of rising inventory prices, but also in the compliance costs within the group.
“Retail spending is expected to drop during the first few months post-GST implementation, as consumers observe the changes in goods and prices. Purchasing power for the middle to lower income groups will be affected,” it said. However, Suiwah sees strong growth prospects for its manufacturing arm in flexible printed circuits and IC substrate industry.
http://www.thestar.com.my
Saturday, 18 October 2014
PETALING JAYA: Suiwah Corporation Bhd’s earnings fell 32.2% to RM2.28mil for its first quarter ended Aug 31, 2014, mainly due to its manufacturing arm which suffered lower sales and margins as a result of market competition.
Its revenue rose 6.5% to RM98.12mil from RM92.12mil a year ago while earnings per share were 3.98 sen compared with 5.88 sen.
In a filing with Bursa Malaysia, it said its retail arm had achieved a 34.1% increase in pre-tax profit due to higher sales and rental income, contributed by its new retail outlet in Bertam, Penang.
Its property investment and development business recorded a 358.8% jump due to additional rental income received and lower operating expenses incurred from its property investment arm.
Suiwah said the Goods and Services Tax (GST) was expected to have immediate term impact on its financial performance once it kicked off on April 1, 2015.
It said the GST would further pressure the cost structure, not just in terms of rising inventory prices, but also in the compliance costs within the group.
“Retail spending is expected to drop during the first few months post-GST implementation, as consumers observe the changes in goods and prices. Purchasing power for the middle to lower income groups will be affected,” it said. However, Suiwah sees strong growth prospects for its manufacturing arm in flexible printed circuits and IC substrate industry.
http://www.thestar.com.my
