[KIMLUN CORP BHD，低毛利润率，预制混凝土产品部门的收入持平，折旧和人力资源成本等固定费用增加]
（i）本季度预制混凝土产品部门的收入持平，而折旧和人力资源成本等固定费用增加。 2018年3月与巴生谷地铁（“KVMRT”）项目相关的预制混凝土产品交付很少，因为在KVMRT其中一个建筑工地发生事故后所有涉及launching gantry的建筑活动停工（“KVMRT停工”）。
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Profit after tax of the Group of RM12.59 million for the current quarter is RM2.79 million or 18.2% lower than the RM15.38 million achieved in Quarter 1 FY2017. The Group’s gross profit (“GP”) margin of 12.4% achieved in the current quarter was lower compared to Quarter 1 FY2017. This was mainly due to lower GP margin achieved by the M&T division, the impact of which was partly offset by the improvement in GP margin of the construction division.
The decline in GP margin of the M&T division during the period was mainly due to:
(i) revenue recorded by the pre-cast concrete products sub-division in the current quarter was flat, while fixed overhead such as depreciation and human resources costs have increased. There was minimum delivery of pre-cast concrete products to customers in relation to the Klang Valley MRT (“KVMRT”) project in March 2018 consequential upon the stoppage of all construction activities involving launching gantry after an accident occurred at one of the KVMRT construction sites (“KVMRT Work Stoppage”).
(ii) approximately 29% of the M&T revenue was contributed by the quarry division which earned low GP margin compared to the pre-cast concrete products sub-division;
(iii) product mix with higher composition of lower margin products sold; and
(iv) Ringgit Malaysia strengthened against the Singapore Dollar during the current quarter.
Other income declined by RM0.71 million due to gains on disposal of property, plant and equipment of RM1.32 million recorded in Quarter 1 FY2017. Selling and administrative expenses increased by RM3.34 million mainly due to the following:
(i) foreign exchange loss of RM1.32 million, compared to foreign exchange gains of RM1.22 million recorded in Quarter 1 FY2017. The foreign exchange loss was attributable to Ringgit Malaysia strengthened against the Singapore Dollar; and
(ii) higher payroll expenses incurred in the current quarter in line with higher scale of operation.
Finance costs were higher in current quarter mainly due to the drawdown of hire purchase facilities during Quarter 4 FY 2017 to finance capital expenditures. Share of profit of joint ventures decreased slightly by RM0.04 million. The variances in gross profit, share of profit of joint ventures, other income and expenses have resulted in the decline of profit before tax by RM2.7 million or 13.7%. Despite of lower profit before tax recorded in the current quarter, tax expense was higher in the current quarter due to higher effective tax rate during the period. Profit after tax recorded in the current quarter thus declined by RM2.79 million or 18.2%.
The Group recorded lower revenue, gross profit and profit net of taxation in the current quarter compared to the preceding quarter, mainly attributable to lower revenue achieved by the construction and M&T divisions. Lower revenue was achieved by the M&T division in the current quarter due to lower delivery of precast concrete products to the KVMRT project in Mar 2018 consequential upon KVMRT Work Stoppage.
The Group has an estimated construction and manufacturing balance order book of approximately RM1.58 billion and RM0.36 billion respectively as at 31 March 2018, contributed by numerous construction contracts and supply contracts. The Malaysian Government has allocated RM260 billion for development expenditure under the 11MP, up 13% as compared to 10th Malaysia Plan. In Singapore, the total construction demand is projected to be between $26 billion to $31 billion in 2018, up from the $24.5 billion (preliminary estimate) awarded in 2017.
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