Zhulian 1Q net profit more than doubles on gains from land sale, declares three sen dividend

KUALA LUMPUR (April 13): Zhulian Corp Bhd's net profit jumped 116.01% to RM26.15 million for the first quarter ended Feb 28, 2022 (1QFY22), from RM12.11 million a year earlier, thanks mainly to a RM14 million net gain from the disposal of land in Indonesia.

Quarterly revenue, however, slipped 16.59% to RM34.57 million from RM41.44 million previously due to overall weak consumer sentiment associated with Covid-19, the group said in a bourse filing.

The multilevel marketing (MLM) group declared its first interim dividend of three sen per share, payable on June 8.

On prospects, Zhulian said its MLM business is closely linked to the sentiment of general consumer market and the fluctuating foreign currency exchange.

The group also cautioned that the strengthening or weakening of the ringgit against the US dollar will have an impact on its performance as all export revenues are transacted in the US currency.

"The group ensures its business' long-term survival by adapting to the constant market demand changes whenever possible while it remains cautious about the economic impact caused by the prolonged Covid-19 pandemic.

"The group is committed to continuously improving its business operational efficiency and maintaining sufficient cash flows in the year 2022," it added.

Besides Malaysia, Zhulian also operates in Thailand, Indonesia and Myanmar.

Shares of Zhulian finished two sen or 1.01% higher at RM2 for a market capitalisation of RM920 million.