[KIMLUN CORP BHD，低毛利润率，预制混凝土产品部门的收入持平，折旧和人力资源成本等固定费用增加]

本季度的集团税后利润为1,259万令吉，比2017财年第一季度的1538万令吉低RM279万令吉或18.2％。金轮企业本季度的毛利润率（“GP”）为12.4％，低于2017财年第一季度。这主要是由于M＆T部门实现的毛利率下降，其影响部分被建筑部门毛利率的改善所抵消。

期内M＆T部门的毛利率下降主要是由于：

（i）本季度预制混凝土产品部门的收入持平，而折旧和人力资源成本等固定费用增加。 2018年3月与巴生谷地铁（“KVMRT”）项目相关的预制混凝土产品交付很少，因为在KVMRT其中一个建筑工地发生事故后所有涉及launching gantry的建筑活动停工（“KVMRT停工”）。

（ii）大约29％的M＆T收入来自采石场部门，与预制混凝土产品部门相比，其毛利率较低;

（iii）销售低利润产品成分较高的产品组合;和

（iv）马来西亚令吉在本季度兑新加坡元走强。

2017财年第一季度，由于出售物业，厂房和设备的收益为132万令吉，这季其他收入减少了71万令吉。销售及行政开支增加334万令吉，主要原因如下：

（i）外汇损失为132万令吉，而2017财年第一季则录得的外汇收益为122万令吉。外汇损失归因于马来西亚令吉兑新加坡元走强;和

（ii）随着经营规模的扩大，本季度的工资支出增加。

本季度财务费用较高，主要是由于2017财年第四季度增加贷款以支付资本支出。合营企业的利润份额略微下降4万令吉。毛利润，合营企业利润份额，其他收入及支出的差异导致税前利润减少270万令吉或13.7％。尽管本季度税前利润较低，但由于期内有效税率较高，本季度税务费用较高。本季度录得的税后利润因此减少了279万令吉或18.2％。

金轮企业本季度的收入，毛利润和利润净额与上一季度相比较低，主要是由于建筑和M＆T部门的收入减少。由于KVMRT工作停工导致2018年3月预制混凝土产品交付给KVMRT项目的数量较少，因此本季度M＆T部门实现了较低的收入。

前景：
截至2018年3月31日，金轮企业的建筑及制造业订单估计分别约为15.8亿令吉及3亿6,000万令吉，由多项建筑合约及供应合约所贡献。马来西亚政府已拨款2,600亿令吉用于11MP项下的发展支出，较第十届马来西亚计划增加13％。在新加坡，2018年的总建筑需求预计在260亿至310亿新元之间，高于2017年的245亿新元（初步估计）。
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我希望将我的策略分享给读者，希望他们在阅读后能够表现出色。我正在使用基本面分析（Fundamental Analysis）：

预计公司每年的增长率必须> 14％

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最终决定永远是你的，谢谢。

James Ng
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Profit after tax of the Group of RM12.59 million for the current quarter is RM2.79 million or 18.2% lower than the RM15.38 million achieved in Quarter 1 FY2017. The Group’s gross profit (“GP”) margin of 12.4% achieved in the current quarter was lower compared to Quarter 1 FY2017. This was mainly due to lower GP margin achieved by the M&T division, the impact of which was partly offset by the improvement in GP margin of the construction division.

The decline in GP margin of the M&T division during the period was mainly due to:

(i) revenue recorded by the pre-cast concrete products sub-division in the current quarter was flat, while fixed overhead such as depreciation and human resources costs have increased. There was minimum delivery of pre-cast concrete products to customers in relation to the Klang Valley MRT (“KVMRT”) project in March 2018 consequential upon the stoppage of all construction activities involving launching gantry after an accident occurred at one of the KVMRT construction sites (“KVMRT Work Stoppage”).

(ii) approximately 29% of the M&T revenue was contributed by the quarry division which earned low GP margin compared to the pre-cast concrete products sub-division;

(iii) product mix with higher composition of lower margin products sold; and

(iv) Ringgit Malaysia strengthened against the Singapore Dollar during the current quarter.

Other income declined by RM0.71 million due to gains on disposal of property, plant and equipment of RM1.32 million recorded in Quarter 1 FY2017. Selling and administrative expenses increased by RM3.34 million mainly due to the following:

(i) foreign exchange loss of RM1.32 million, compared to foreign exchange gains of RM1.22 million recorded in Quarter 1 FY2017. The foreign exchange loss was attributable to Ringgit Malaysia strengthened against the Singapore Dollar; and

(ii) higher payroll expenses incurred in the current quarter in line with higher scale of operation.

Finance costs were higher in current quarter mainly due to the drawdown of hire purchase facilities during Quarter 4 FY 2017 to finance capital expenditures. Share of profit of joint ventures decreased slightly by RM0.04 million. The variances in gross profit, share of profit of joint ventures, other income and expenses have resulted in the decline of profit before tax by RM2.7 million or 13.7%. Despite of lower profit before tax recorded in the current quarter, tax expense was higher in the current quarter due to higher effective tax rate during the period. Profit after tax recorded in the current quarter thus declined by RM2.79 million or 18.2%.

The Group recorded lower revenue, gross profit and profit net of taxation in the current quarter compared to the preceding quarter, mainly attributable to lower revenue achieved by the construction and M&T divisions. Lower revenue was achieved by the M&T division in the current quarter due to lower delivery of precast concrete products to the KVMRT project in Mar 2018 consequential upon KVMRT Work Stoppage.

Prospects:
The Group has an estimated construction and manufacturing balance order book of approximately RM1.58 billion and RM0.36 billion respectively as at 31 March 2018, contributed by numerous construction contracts and supply contracts. The Malaysian Government has allocated RM260 billion for development expenditure under the 11MP, up 13% as compared to 10th Malaysia Plan. In Singapore, the total construction demand is projected to be between $26 billion to $31 billion in 2018, up from the $24.5 billion (preliminary estimate) awarded in 2017.
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I wish to share my strategy to readers, hope that they can perform well after reading this. I am using Fundamental Analysis:

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Final decision is always yours, thank you.

James Ng