9MFY16 gross profit increased 9.6% to RM1.5 billion with gross margin expanding 1.8 percentage points as a result of favourable prices of commodities and better operating efficiency. As a result, 9MFY16 net profit surged 16.1% to RM570.2 million, further aided by the lower effective tax rates of 16.8%. As a result, 3QFY16 net profit fell 27.2% to RM160.7 million. While the company is on course to achieving our profit growth forecast of 16.3%, we are turning cautious about the longer-term outlook. Earnings growth is expected to slow to 3.5% in FY17 in view of the diminishing advantage of lower raw material prices as prices of commodities trend normalise.

Source: The Edge Markets October 27, 2016 02:03 UTC