Ni Hsin returns to profitability in 3Q on forex gains

Published at 2015-11-19 16:55:19 by The Edge

KUALA LUMPUR (Nov 19): Stainless steel cookware manufacturer Ni Hsin Resources Bhd got back in the black with a net profit of RM1.5 million in its third quarter ended Sept 30 (3QFY15) mainly due to foreign exchange gains.

It made a net loss of RM159,000 in the previous year's corresponding quarter, its filing to Bursa Malaysia today showed.

Its revenue for the same quarter rose 17.27% to RM12.02 million from RM10.25 million last year, mainly due to an increase in sales of cookware and clad metal.

"The company experienced an improvement in sales of premium cookware to Japan, which is its major export market. Sales to the United States, Canada and the Asia-Pacific (excluding Japan) countries also improved in the first nine months," a separate statement from Ni Hsin today read.

The improved results saw the group record a cumulative nine-month (9MFY15) net profit of RM2.07 million, compared to a net loss of RM551,000 in the same period last year, while revenue rose 19.8% to RM36.09 million from RM30.14 million in 9MFY14.

Moving forward, Ni Hsin expects to operate in a challenging economic and business environment in its key markets in 2015, due to the slowdown in global economic growth and a weaker consumption expected for Malaysia affected by the impact of goods and services tax.

As at 4.29pm. Ni Hsin shares were trading unchanged at 36 sen, which valued it at RM82.1 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)