Malaysia: Tasek Corp full-year profit ahead

Malaysia: Tasek Corp full-year profit ahead
Published: 18 February 2015


Tasek Corporation Bhd's net profit rose 11.86 per cent to MYR105.4m (US$29.1m) compared to MYR93.90m a year earlier despite heightened competition. Revenue rose to MYR656.06m compared to MYR121.04m in 2013.

The Malaysia based cement producer attributed the better to performance to higher domestic cement demand and improved ready-mix concrete prices. “The ongoing mass rapid transit projects and light rail transit line extensions are expected to continue leading the construction sector’s growth for the first quarter of 2015,” the company said.

However, Tasek added that "intense price competition in the domestic market" took its toll on profit after tax in the final quarter. While revenue increased by 11.6 per cent for the three months to the end of December 2014, net profit edged ahead by just 1.03 per cent YoY to MYR27.55m.

Going forward, Tasek expects outlook for the construction sector during 1Q15 to remain positive despite the drop in oil prices and its weakening effect on the country's economy, which may affect government spending. "The ongoing government's Mass Rapid Transit (MRT) projects and Light Railway Transit (LRT) line extensions are expected to continue to lead the construction sector's growth for the first quarter of 2015," the company added.