KUALA LUMPUR (Feb 20): Sern Kou Resources Bhd saw its net profit surge 47.1% to RM6.17 million in the second quarter ended Dec 31, 2019 (2QFY20) from RM4.2 million a year earlier, on the back of improved revenue.  

Earnings per share rose to 2.49 sen from 1.75 sen, the group said in a filing with the stock exchange. 

Quarterly revenue jumped 52.73% to RM76.3 million from RM49.96 million, on higher contribution from all of its businesses, comprising manufacturing, kiln, drying, lamination, and sawmill and wood processing. 

For the cumulative six-month period (6MFY20), net profit doubled to a record-high of 12.33 million from RM5.98 million a year ago.  Revenue increased 44% to RM155.2 million, from RM107.8 million.  

In a press statement, Sern Kou managing director Chua Peng Sian said the sawmill operation remained as the group’s primary growth driver.

“As part of our plans to increase our sawmill capacity to cater for the growing demand, we are in the midst of expanding our existing sawmill plant in Kuala Krai, Kelantan. The expansion is progressing well and is on track for completion by the end of FY20,” he added.  

“On the other hand, the group managed to sustain the positive momentum for our downstream furniture manufacturing business, as we posted another profitable quarter in 2QFY20, after returning to the black in the immediate preceding quarter,” Sern said. 

He noted that the group recently installed a new kitchen cabinet production line, which is currently undergoing testing. 

“We believe Sern Kou will be a pioneer in exporting kitchen cabinets to the US, from Malaysia. We expect this to progressively enhance the earnings of our furniture manufacturing division, going forward,” he added.  

Sern Kou’s share price closed down half a sen or 0.59% at 84 sen, bringing a market capitalisation of RM213.93 million. It saw some 83,100 shares done. The counter has gained some 51% over the past-one year, from 55.5 sen.