Quarter 3, 2013 (“3Q13”) vs Quarter 3, 2012 (“3Q12”)
The Group’s revenue and profit before tax (“PBT”) for the 3Q13 were 16% and 40% higher than the 3Q12 respectively. Higher contributions were made by:-
(i) Cement Division – PBT was higher as the clinker plant was running smoothly in the current quarter whereas in the previous year same quarter, the upgrading was still in progress. Higher PBT was also contributed by the recognition of a delayed penalty compensation claim on the upgrading. Revenue was slightly lower due to a lower demand for its ready-mix concrete.
(ii) Construction & Road Maintenance Division – Higher revenue and PBT in the current quarter due to longer road length maintained and more works undertaken.
(iii) Construction Materials & Trading Division – Higher revenue and PBT in the current quarter
mainly due to higher sales of stones & contract services to JKR and higher sales of steel pipes and special fittings.
However, the above was partially offset by Samalaju Development Division’s lower PBT in the current quarter which was due to a higher depreciation charge. Revenue for the current quarter was however higher than the previous year same quarter.
Year-to-date, 2013 (“PE2013”) vs Year-to-date, 2012 (“PE2012”)
The Group’s revenue for PE2013 continued to be driven by the Cement Division, followed by the Construction Material and Trading Division. However, in terms of % increase, Construction Materials & Trading Division recorded the highest increase (70%), followed by Samalaju Development Division (69%).
The Group’s PBT also continued to be driven by Cement Division, but followed by Construction & Road Maintenance Division. However, in terms of % increase, Construction Materials & Trading
Division recorded the highest increase (64%), followed by Cement Division (42%).
The Cement Division recorded a 42% higher PBT of RM74.87 million in PE2013 over PE2012’s PBT of RM52.87 million, attributed mainly to the turnaround of CMS Clinker which has been operating smoothly since March 2013 after a prolonged shut down for upgrading in PE2012.
The Construction Materials & Trading Division reported a strong PBT for PE2013 of RM38.11 million which exceeded PE2012’s PBT of RM23.30 million by 64%, on the back of higher revenue which arose from the spill-over works of 2012 under Jabatan kerja Raya (“JKR”) and the earlier implementation of JKR’s 2013 Malaysian Road Records Information System (“MARRIS”) program. In addition, the Division also secured a few major private projects in PE2013.
The Construction & Road Maintenance Division posted a PBT of RM53.51 million including the share of profit of jointly controlled entities (PE2012: RM45.94 million), representing an increase of 16% over PE2012 mainly due to more works undertaken in PE2013.
The Property Development Division recorded a marginal loss in PE2013 compared to a profit in PE2012 (RM22.10 million). The profit in PE2012 was due mainly to the recognition of the profit for a land sale.
The Samalaju Development Division registered a 28% jump in PBT to RM26.73 million in PE2013 from RM20.93 million in PE2012, on the back of higher revenue from more blocks of lodges built and occupied.
The Strategic Investments Division (excluding the listed associates) recorded a lower loss in PE2013 compared to PE2012. This was attributed to higher profits recorded by the investment and private equity companies but partially offset by a higher loss reported by the education company.