China recovery lifts IFCA MSC 2Q earnings

TheStar Fri, Aug 21, 2020 07:08pm - 6 months ago

KUALA LUMPUR: IFCA MSC Bhd posted net profit of RM3.67mil in the second quarter ended June 30,2020 mainly due to rapid recovery in China economy and lower overall operating costs despite lower revenue.

It said on Friday this was much better than the RM1.04mil a year ago. Its revenue was lower at RM20.50mil compared with RM21.08mil a year ago. Earnings per share were 0.6 sen compared with 0.17 sen.

“The decrease in revenue was primarily attributable to project slowdown in both Malaysia and Indonesia after the implementation of Movement Control Order (MCO) in Malaysia from 18th March 2020 and large-scale social restriction in Indonesia since April, ” it said.

IFCA MSC said revenue rose by 33.9% to RM20.5mil from RM15.3mil in 1Q mainly due to rapid recovery in China after being disrupted by the Covid-19 outbreak in 1Q.

“Thus, the group recorded profit before tax of RM4.3mil for the Q2 which represents an increase of RM6.9mil as compared to loss before tax of RM2.6mil in the Q1F which incurred a one-time impairment loses of RM2.1mil, ” it said.

For the first half, it posted net profit of RM1.07mil compared with RM1.31mil a year ago. Its revenue declined to RM35.81mil from RM38.88mil a year ago.

The weaker financial performance was due to Covid-19 pandemic lock down in China and MCO in Malaysia which caused shorter operational period in current cumulative period.

As at June 30,2020, the group has unbilled orders in hand amounting to RM35.8mil.

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