Corporate results: Cypark, Dataprep and Luster Industries

by TMR / pic by TMR GRAPHIC 

Cypark 3QFY20 earnings fall 15.5% YoY to RM16.15m

CYPARK Resources Bhd’s net profit for the third quarter ended July 31, 2020 (3QFY20) dropped 19.5% year-on-year (YoY) to RM16.15 million from RM20.06 million a year ago mainly due to new specialist projects secured in the current quarter, interest revenue recognised upon the adoption of MFRS15 and cost savings arising from an exercise implemented by the group at the start of the quarter.

Revenue for the quarter fell 36.12% YoY to RM55.68 million from RM87.17 million last year mainly attributed to the total suspension of work activities from March 18, 2020, to June 9, 2020, to comply with restrictions imposed throughout the Movement Control Order phases which will continue to be effective until year-end.

For the cumulative nine-month period, Cypark’s net profit slipped 6.13% YoY to RM49.2 million from RM52.41 million, while revenue declined 19.75% YoY to RM222.31 million from RM277.04 million.

On FY 2020 prospects, Cypark said the company will further strengthen its capability in taking advantage of the more attractive government policies on renewable energy, continued development of more affordable and efficient green technology globally, and dynamic market mechanism to ensure it would continue its uninterrupted revenue and profitability growth experienced since 2012.

Dataprep raises RM5m from first tranche of private placement

DATAPREP Holdings Bhd has raised RM5 million from its first tranche of private placement to date.

Another RM4 million will be raised by the group as announced on Sept 28, 2020.

“Moving forward, the shareholders’ equity over the share capital (excluding treasury shares) will definitely be higher than the minimum ratio,” it said in an exchange filing yesterday.

Dataprep has triggered the prescribed criteria pursuant to Paragraph 8.04 and Paragraph 2.1(a) of Practice Note 17 (PN17) of Bursa Malaysia’s main market listing requirements (LR), where it declared the shareholders’ equity on a consolidated basis at 25% or less of the share capital (excluding treasury shares) in respect of its quarterly financial statements for the financial period ended June 30, 2020.

Under the PN17 Relief Measures, an affected listed issuer that triggers any of the suspended criteria during the relief period will not be classified as a PN17 listed issuer and will not be required to comply with the obligations pursuant to paragraph 8.04 and PN17 of the main LR for a period of 12 months from the date that triggered the criteria.

Luster Industries’ subsidiary forms JV with Hong Kong-based firm

LUSTER Industries Bhd’s wholly-owned subsidiary Exzone Precision Engineering Sdn Bhd has entered into a joint venture (JV) agreement with Tech Idea Ltd (TIL) to undertake the manufacturing of speaker systems, headphones and other related products via a JV company, TSI Zone (Malaysia) Sdn Bhd (TSIZ).

Luster Industries said the partnership is in line with its overall corporate strategy of pursuing new business opportunities to enhance its investments.

It said the JV agreement enables the group and its subsidiaries to undertake the manufacturing of speaker systems and headphone products, both wired and wireless for products of speaker systems, headphone, unified communication products and other related products.

Under the agreement, Exzone holds a 60% of the interest while the remaining 40% is taken up by the Hong Kong-based Tech Idea.

Luster Industries said the board of TSIZ would comprise three members of which two members shall be nominated by Exzone and one member by TIL.

It added that the agreement shall continue until the parties mutually agree to terminate the partnership.

Luster Industries does not expect the JV to have an impact on its gearing for the financial year ending December 2020 but says the deal will contribute positively to its future earnings, earnings per share and enhance the consolidated net assets of the group.