KUALA LUMPUR (May 26): Pestech International Bhd posted a net profit of RM12.52 million on revenue of RM123.4 million for the three months ended March 31, 2016.
There were no comparative figures provided as it changed its financial year end to June 30 from Dec 31, its filing with Bursa Malaysia said.
It told stock exchange that its projects segment accounted for RM121.1 million or 98.1% of its total revenue, while the remaining RM2.3 million or 1.9% was contributed by its products segment.
Pestech said its profit margin stood at 26.6% for the financial quarter ended March 31, 2016.
For the nine-month period ended March 31, 2016, net profit stood at RM50.37 million on revenue of RM318.02 million.
In a separate filing, Pestech has proposed a one-for-two share split to enhance the stock's marketability and trading liquidity.
The exercise will see its issued and paid-up capital increase to RM93.29 million comprising 373.19 million shares of 25 sen each from RM93.29 million comprising 186.59 million shares of 50 sen each currently.
Subsequently, it proposed a one-for-one bonus issue to reward its shareholders.
To facilitate the corporate exercise, the company also proposes an amendment on the Memorandum of Association.
The amendment will see its share capital of RM500 million, presently divided into 1 billion shares of 50 sen each, become RM1 billion, divided into 4 billion shares of 25 sen each.
The company said although the share split is not expected to have any effect on the group's earnings for the financial year ending Dec 31, 2016, the earnings per share (EPS) will be proportionally diluted as a result of the increase in the number of shares in issue, upon completion of the exercise.
Going forward, Pestech said it will continue its thrust for growth supported by the power transmission line and substation infrastructure build-up along with the impetus in the progress of rail electrification business.
"We expect sustainable development in the power transmission line and substation aspect of its business, with contribution deriving from both local market and also regional prospects," it added.
It has also successfully delivered control and automation upgrades of Distributed Control System (DCS) for power plants.
"These successes established the group as a first regional solution provider for power plant automation, (and) balance of plant design," it added.
Shares in Pestech rose 12 sen or 1.77% to close at its year-to-date high of RM6.30, for a market value of RM1.28 billion.
PESTECH (5219) - Pestech posts RM12.52m profits, proposes bonus issue
http://www.theedgemarkets.com/my/article/pestech-posts-rm1252m-profits-proposes-bonus-issue
