Monday, November 8, 2010

Dayang Enterprise 3Q earnings double to RM22.6m

KUALA LUMPUR: Dayang Enterprise Bhd's third quarter earnings doubled to RM22.63 million from RM11.03 million a year ago due to higher value of work orders received and performed.

The company said on Monday, Nov 8 revenue rose 47% to RM72.43 million in the quarter ended Sept 30, from RM49.33 million while earnings per share were 6.43 sen versus 3.13 sen. It declared an interim dividend of five sen per share.

Dayang said the higher revenue was mainly due to higher value of work orders received and performed in the current quarter.

'Whilst revenue increased by RM23.1 million, that is 47%, profit before tax (excluding share of results of an associate) for the current quarter increased by RM13.0 million, that is 112% in view of the fact that the work orders in the current quarter have a higher profit margin contribution,' it said.

It also proposed a one-for-four bonus issue of 88 million new shares and also a renounceable rights issue of 110 million new shares on the basis of one rights shares for every four shares held.

The proposed rights issue is expected to raise RM110 million based on the indicative issue price of RM1 per rights share. The proceeds would be used as working capital.


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