KPS posts steady Q3 revenue growth, declares 6.5 sen dividend

KUALA LUMPUR, Nov 25 (Bernama) -- Kumpulan Perangsang Selangor Bhd’s (KPS) revenue increased for the third quarter (Q3) ended Sept 30, 2022 (FY2022) to RM382.77 million from RM360.10 million in the corresponding quarter a year ago.

However, net profit reduced for the quarter under review at RM14.02 million from RM25.65 million in the same period last year, said the investment holding company in a filing with Bursa Malaysia today.

KPS said that on Oct 13, 2022, the disposal of the SPRINT Highway was completed and the company received a sum of RM172.6 million for its 20 per cent share in this exercise.

“To this effect, the board has declared a special dividend of 4.5 sen per ordinary share, alongside an interim dividend of 2.0 sen per ordinary share for the financial year ending Dec 31, 2022, with a total dividend of 6.5 sen per ordinary share.

“The entitlement and payment dates of the dividends will be on Dec 12, 2022 and Dec 30, 2022, respectively,” it said.

Managing director/group chief executive officer Ahmad Fariz Hassan said as the current macro-economic challenges affecting the overall business sentiment, such as recession fear alongside energy crises and rising interest rates regime, KPS will continue to ensure the group runs efficiently.

“For the immediate term, this effort includes managing the escalated operating costs and streamlining our resources and operations.

“Over the medium term, our strategy would include looking for opportunities for earnings-accretive acquisition to complement our existing manufacturing business,” he said in a statement.

KPS also said that its manufacturing business recorded a slightly higher revenue year-on-year (y-o-y) of RM323.1 million, compared with RM319.0 million in the corresponding quarter last year due to demand normalisation on some products and shortages of electronic chips.

“The manufacturing business, comprising Toyoplas Manufacturing (Malaysia) Sdn Bhd, Century Bond Bhd, CPI (Penang) Sdn Bhd, King Koil Manufacturing West LLC and King Koil Sales Inc contributed 84 per cent of the group revenue,” it said.

The trading business grew by 42 per cent y-o-y, with a total revenue of RM43.3 million in the quarter under review compared with RM30.5 million in the corresponding quarter last year. 

“The revenue increase was supported by Aqua-Flo Sdn Bhd’s new water chemical and water meter contracts from Pengurusan Air Selangor Sdn Bhd,” it said.

The company also said that the licensing business also recorded an increase in revenue y-o-y at RM9.8 million, compared with RM8.6 million in the corresponding quarter last year, led by the higher revenue from international licensees.

-- BERNAMA