Muhibbah announces second quarter growth
10 September 2007Muhibbah Engineering has reported strong revenue growth in the first half of 2007, with overall revenue up 16.5% to MYR600.2m ($170.88m), and cranes revenue up 17.3% to MYR196m ($55.8m) from MYR167m ($47.54m) in the first half of 2006.
Operating profit for the cranes sector rose 63%, from MYR8.55m ($2.43m) in H1 2006 to MYR13.97m ($3.97m) in H1 2007. Cranes segment profit before tax was up 83% year on year, from MYR5.63m ($1.60m) to MYR10.31m ($2.93m). The company’s order backlog for the cranes segment is currently worth MYR573m ($163.14m).
A report by Asia Analytica noted that the company has secured a number of new projects for the cranes division, and continue to restructure the segment. The analysts said this had allowed the firm to improve margins at the division to 4.8%, from 3.3%, which it said was in line with international industry norms.
The analysts said, “With 1H07 results already accounting for 55.4% of our earlier full year net profit forecast of MYR58.8m ($16.73m), we are raising our FY07 net profit forecast by 14.5% to MYR67.3m ($19.16m), or 45 sen per share. We are raising our FY08 net profit forecast by 10% to MYR93m ($26.47m), or 62.2 sen per share.” They continue to advise investors to buy.
