Choo Bee Metal Ind

[sschong92]

not vested

Choo Bee Metal Industries Bhd saw its net profit risen 32.54% on-year to RM3.91 million or 3.59 sen per share in the first quarter of ended March 31, 2015 (1QFY15), from RM2.95 million or 2.71 sen per share, on stronger demand and better prices.

Choo Bee (fundamental: 1.5; valuation: 2)’s improvement was due to dealers stocking up ahead of the implementation of the goods and services tax (GST), stronger demand of steel from the construction industry, and improved average selling prices.

Revenue was up 24.89% on-year to RM144.89 million in 1QFY15, from RM116.01 million previously.

The earnings increase in 1QFY15, contributed by both its manufacturing and trading operations, was partially offset by higher sales and marketing expenses, as well as foreign exchange losses due to the weaker ringgit.

Source: The Edge