KUALA LUMPUR (July 30): Kein Hing International Bhd, whose share price has climbed by over 50% this month, returned to the black in the latest quarter on higher revenue from both its Malaysian and Vietnam operations and ongoing cost savings efforts.

The group reported a net profit of RM3.02 million or 2.77 sen per share for the fourth quarter ended April 30, 2021 (4QFY21), compared with a net loss of RM108,000 or 0.1 sen per share a year earlier.

The group declared a dividend of RM1.09 million or 1 sen per share, with the entitlement date to be determined later.

Quarterly revenue rose 84.33% to RM66.68 million, from RM36.17 million, the group said.

This is led by gains in the Malaysian operations on stronger demand for TV product components, and the low base from 4QFY20 due to the Movement Control order (MCO 1.0).

Vietnam operations also posted a higher topline on increased sales, the group said.

The latest results helped Kein Hing post its highest full-year net profit of RM11.89 million for the year ended April 30, 2021 (FY2021) — up by more than four folds, compared with RM2.61 million in FY2020.

This is despite a slower growth of 25.12% in its full-year topline to RM253.11 million, from RM202.29 million.

The commendable performance may be a challenge to sustain, as Kein Hing said the MCO 3.0 implemented from June 1 may severely impact the group’s performance in the coming quarter.

Additionally, its Vietnam manufacturing plant for certain customers was temporarily shut down due to a Covid-19 resurgence there, with the impact  to spill over into the coming quarter.

“In view of the uncertainty and challenging operating environment, the board of directors foresees that the group’s results for the next financial year ending April 30, 2022 will be affected to a certain extent. However, the overall performance should still be satisfactory,” it said.

Shares of Kein Hing have come off Thursday’s record high, falling 9 sen or 7.14% to RM1.17 today, valuing the group at RM127.41 million.