KUALA LUMPUR (May 28): Kitchen cabinet manufacturer Signature International Bhd (KL:SIGN) said on Tuesday its net profit more than doubled in the first quarter of 2024 compared to a year ago, driven by higher revenue from its kitchen and wardrobe system segment through its Corten and Signature brands.

Net profit for the three months ended March 31, 2024 (1QFY2024) rose to RM5.28 million from RM2.16 million as revenue expanded by 69.92% to RM150.48 million from RM88.56 million, said Signature International, which is controlled by Chin Hin Group Bhd (KL:CHINHIN), in an exchange filing.

Earnings per share rose to 0.80 sen from 0.70 sen in 1QFY2023.

The group also announced an interim dividend of four sen per share, to be paid on June 25. It last declared a cash dividend of one sen per share for FY2019, and a share dividend on the basis of 40 treasury shares for every one thousand shares held for FY2021.

Compared with the immediate preceding quarter of 4QFY2023, the company’s net profit dropped 67.34% from RM16.15 million, as revenue fell 12.94% from RM172.85.

“We anticipate encountering persistent challenges as we navigate ongoing uncertainties, primarily stemming from macroeconomic instability, including escalating inflation and elevated interest rates for the financial year 2024,” it said.

Nonetheless, the group said it is committed to improving its efficiency and project deliveries through key focus areas. It views its project segment as "pivotal in restructuring our business through vertical integration".

As of March 31, 2024, the group's order book stood at about RM1.24 billion. “We are optimistic that the group’s revenue and profit will improve in the next financial year based on the large number of order books on hand,” it added.

At the time of writing on Tuesday, Signature International's shares were trading three sen or 1.94% lower at RM1.52, giving the group a market capitalisation of RM981.16 million. The counter has climbed 78.82% since the beginning of this year.