25 October 2012

Written by Ho Ching-Ling
KUALA LUMPUR (Oct 25): Daibochi Plastic and Packaging Industry Bhd\’s net profit for the third quarter (3Q) ended Sept 30, 2012 jumped 51.9% year-on-year (y-o-y) to RM6.9 million, mainly due to better performance at its Australian packaging operations.

Revenue for the quarter, however, declined 2.97% to RM65.66 million over the same period due to lower contributions from its property development segment as the group continues to phase out the division.
\”We believe that Daibochi is gaining traction in the overseas markets, particularly in Australia, where revenues have risen 26% year-on-year to RM11.7 million in 3Q12,\” said Daibochi group managing director Thomas Lim in a statement today (Thursday).

The group currently supplies laminated flexible packaging to global players such as Nestl�, Cadbury and Kraft, Coles, Woolworths, Purina and Fonterra, the statement read.

For the nine months ended Sept 30, 2012, net profits gained 29.9% to RM18.39 million or 16.24 sen a share from RM14.16 million the same period last year. Revenue for the period fell 1.69% to RM204.99 million compared to RM208.53 million previously.

Looking ahead, Daiboichi said it is set to deliver record earnings for the full year ending Dec 31, 2012 (FY2012) and meet its dividend policy of distributing 60% of net profit to shareholders.

\”The company has been receiving further enquiries from multinational manufacturers for the sourcing of their flexible packaging requirements from Asia� [and] is well positioned to take up these opportunities.
\”The board is optimistic that with the strong performance from the packaging segment in the current quarter and the continued customer expansion initiatives, the group is poised to deliver a record year in earnings for 2012 despite the anticipated minimal contributions from the property segment,\” notes to its accounts read.

Daibochi also declared a third tax-exempt interim dividend of 3.5 sen per share or RM4 million which brings the total dividend pay-out for FY2012 to RM11.2 million.
Daibochi closed at RM2.62, up 1 sen or 0.38% with 47,200 shares done.