KKB Engineering’s share price fall after posting Q2 net loss

PETALING JAYA: KKB Engineering Bhd’s share price fell 5.71% this morning after it swung to the red registering a net loss of RM7.2 million for the second quarter ended June 30, 2017 versus a net profit of RM374,000 in the previous corresponding period.

As at 11.14am, KKB is the top 21st loser on Bursa Securities. Its share price stood at 99 sen with 169,100 million shares changing hands. It has a market capitalisation of RM255 million.

It said the highly competitive environment coupled with escalation of cost due to the weakening of exchange rates, volatility of global raw material prices and direct overhead cost, mainly in the steel fabrication division, had led to the reduction in profit margins.

Second-quarter revenue, however, expanded 72.5% from RM27.18 million to RM46.87 million, on the back of higher contribution from the civil construction division.