SHAH ALAM, May 28 — Kumpulan Perangsang Selangor Berhad (KPS) has yesterday reported a 31.6 per cent growth in revenue to RM308.4 million for the quarter ended March 31, 2021, as compared with RM234.4 million in the corresponding quarter last year.
Riding on an improvement in sales from the manufacturing business, albeit at a lower gross profit margin and higher other income, KPS improved its operating profits, posting a 35.4 per cent growth to RM24.3 million from RM17.9 million in the corresponding period last year.
KPS’s Profit Attributable to Owner of the Parent for the quarter more than tripled, coming in at RM11.0 million as compared with RM3.1 million in the corresponding quarter in the previous year.
Manufacturing leads the way
The manufacturing business recorded 43.8 per cent revenue growth YoY, contributing RM267.0 million to the group’s revenue as compared with RM185.7 million in the corresponding quarter last year.
At RM267.0 million, the manufacturing businesses that comprise Toyoplas Manufacturing (Malaysia) Sdn Bhd (Toyoplas), Century Bond Bhd (CBB), CPI (Penang) Sdn Bhd (CPI) and King Koil Manufacturing West LLC (KKMW), contributed 86.6 per cent to the group’s revenue.
With better sales performances from its Indonesia, China, Malaysia, and Vietnam operations, Toyoplas led the revenue contribution with RM125.7 million, as compared with RM76.1 million contributed in the corresponding quarter last year.
This was followed by CBB, contributing RM59.1 million as compared with RM48.0 million contributed in the corresponding quarter last year.
CPI contributed RM50.8 million, higher than what was posted in the corresponding quarter last year by RM11.6 million. It registered a higher sales number given higher traction of demand from the Healthcare and Other industry segments.
KKMW contributed the remaining manufacturing revenue of RM27.2 million, stronger by RM5.5 million, supported by an improved retail sentiment and optimism in the US.
A further RM26.6 million of KPS’s revenue was derived from the trading business, represented by Aqua-Flo Sdn Bhd (Aqua-Flo), whose revenue moderated by 18.7 per cent from RM32.7 million in the corresponding quarter last year due to lower sales of chemicals. At RM26.6 million, Aqua-Flo contributed 8.6 per cent to the group’s revenue.
The licensing business, King Koil Licensing Company Inc (KKLC), contributed RM9.4 million. During the quarter under review, KKLC’s revenue contribution to the group eased by 18.3 per cent from RM11.5 million due to lower traction from international royalties. KKLC contributed 3.0 per cent to the group’s revenue this quarter.
The infrastructure business, which is represented by KPS-HCM Sdn Bhd (KPS-HCM) and Smartpipe Technology Sdn Bhd (Smartpipe), contributed RM3.3 million against RM1.8 million in the corresponding quarter last year. The infrastructure business contributed only 1.1 per cent to KPS’s revenue this quarter.
The remaining revenue contribution of RM2.1 million, or 0.7 per cent, to the group’s revenue, was from investment holding and property investment, mainly from rental income from Plaza Perangsang.
KPS’s managing director and group chief executive officer, Ahmad Fariz Hassan, said: “In a better footing with our geographical and sectoral diversified business, KPS has made a strong start to 2021 as businesses globally have started to show a positive sign of improvement.
“The strong show of growth in revenue and operating profit is a testament to the successful execution of our business strategy.”
Rising above challenges
KPS remains optimistic that the overall economic environment and the end markets it serves remain stable and continue to trend positively in the near term. The group will continue to expand the network of suppliers for more competitive prices, roll out more optimised production planning against inventory level and may be negotiating a cost-pass-through mechanism with selective customers.
“While we shall remain steadfast in rising above the short-term challenges, we are also encouraged by the favourable prospect that comes with these challenges and thus optimistic about the growth opportunities they offer from the medium-term onward,” said Ahmad Fariz.
“Amidst this outlook, we are laser-focused on delivering sustainable and better results in the following quarters this year.”
