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 SKPRES 7155 SKP RESOURCES BHD posts record high annual profit of RM169.83m in FY22

KUALA LUMPUR (May 27): SKP Resources Bhd bagged a record high net profit for the financial year ended March 31, 2022 (FY22) at RM169.83 million, as it was able to benefit from economies of scale and increased efficiency in its manufacturing process over time.

The net profit in FY22 was 27.56% higher than in the preceding financial year, when the group recorded RM133.24 million.

Revenue during the financial year was a marginal 2.97% higher at RM2.32 billion compared with RM2.25 billion, according to the electronics manufacturing services (EMS) provider’s filing on Friday (May 27).

SKP said no interim dividend has been declared for FY22, but noted that it will endeavour to maintain its dividend policy of a minimum 50% pay-out subject to factors which include the availability of distributable reserves as well as its future cash flow or capex requirements, investment opportunities, regulatory and statutory restrictions and market conditions.

The group’s net profit in the fourth quarter ended March 31, 2022 (4QFY22) climbed 43.75% to RM51.19 million from RM35.61 million, as its revenue increased 39.68% to RM576.85 million from RM412.99 million.

In terms of quarter-on-quarter (q-o-q), 4QFY22’s net profit was up 11.13% from RM46.06 million, despite a 14.22% q-o-q drop in revenue from RM672.5 million, buoyed by an improved net profit margin.

“The group achieved another milestone by registering notable improvement in net profit margin of approximately 10.41% (preceding quarter ended December 31 2021: 9.02%) in [4QFY22], mainly due to improvement in operational efficiencies and cost controls observed over time,” it said.

On its prospects for FY23, SKP Resources said that despite operational challenges in the form of supply chain disruptions and manpower constraints as well as the Covid-19 outbreaks in China, the business sentiment of most of the group’s customers remains positive.

“The group is strategically well-positioned in the EMS industry and continues to pursue opportunities to grow its market share from existing customers. Notwithstanding the current market conditions, the group continues to receive enquiries from both existing and potential new customers for new projects,” it added.

The group noted that moving forward, it anticipates higher capacity utilisation and improved production in line with its customer guidance as well as increased revenue contribution from its customers’ orders in coming quarters.

SKP Resources shares ended four sen or 2.78% higher at RM1.48, giving the group a market capitalisation of RM2.31 billion.

http://www.theedgemarkets.com/article/skp-resources-posts-record-high-annual-profit-rm16983m-fy22

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