KUALA LUMPUR (Aug 24): Shares in CI Holdings Bhd gained more than 4% in early trade on Wednesday (Aug 24), after its net profit for the fourth quarter ended June 30, 2022 (4QFY22) rose 13% to RM25.02 million, from RM22.13 million a year ago, and with it proposing a final dividend of 12 sen per share.
At the time of writing, the counter was among the top gainers on Bursa Malaysia, gaining 12 sen or 4.23% to RM2.96, after 30,600 shares changed hands. This translated into a market capitalisation of RM479.52 million.
The edible oil manufacturer, in a filing with Bursa on Tuesday, said the solid earnings came on the back of stronger quarterly revenue, which jumped 41% to RM1.26 billion from RM900.15 million, driven by higher palm olein prices as well as a stronger US dollar against the ringgit.
But CI Holdings noted that its earnings grew at a slower pace than revenue growth in 4QFY22, as a threefold increase in administrative expenses bore down on its margin.
The group is also involved in the manufacturing and trading of household fittings and appliances, such as water taps, plumbing accessories and sanitary wares (toilets and wash basins).
For the full year, net profit slipped 5% to RM66.49 million from RM69.97 million for FY21, in spite of revenue climbing 29% to RM4.05 billion from RM3.14 billion.
Despite the mild retreat in full-year earnings, the group declared a final dividend of 12 sen per share for FY22 — amounting to approximately RM19.44 million, with the ex-date on Sept 23 — to be paid on Oct 11.
In terms of prospects, CI Holdings said it will continue to grow its revenue via expansion plans for its edible oil operations, as well as through smart partnerships with property developments for its tapware and sanitary ware divisions to enhance shareholder value.