KKB Engineering posts RM4.97m net profit in Q3

PETALING JAYA: KKB Engineering Bhd has posted a net profit of RM4.97 million for the third quarter ended Sept 30, 2017 (Q3), from a net loss RM135,000 in the previous corresponding quarter on the back of higher revenue.
Revenue for the quarter surged 78.3% to RM49.3 million, compared with RM27.6 million in the same period last year.
In a filing with Bursa Malaysia today, KKB said the increase in revenue was mainly due to higher revenue recognition from its civil construction division but offset by lower revenue from its steel pipes manufacturing division as compared to the preceding year corresponding quarter.
For the nine months period, its net loss widened to RM3.7 million, against RM1.7 million a year ago, while revenue jumped 80.7% to RM139.1 million, from RM77 million previously.
On its prospects, KKB said the group had weathered a tough 1H 2017, but saw a positive sign of recovery towards the 2H 2017. It will maintain its effort on cost management, product quality and operational efficiency to further improve its operating results, amid the threat of adverse effect from the volatility of raw material steel prices and foreign exchange rates on its performance.
KKB gained 4.5 sen or 5.33% to 89 sen today with a total of 843,100 shares traded.