Piping business boosts VicPlas' interim gain

SESDAQ-LISTED VicPlas International yesterday reported a near-doubling of its interim net profit to $1.6 million from $831,000.

Revenue for the six months ended Jan 31 rose 34.7 per cent to $8.1 million, thanks to increased sales at its PVC pipes and pipe fitttings business.

This division contributed 87.3 per cent towards total revenue, with the remainder coming from sales of medical device components.

Its 50 per cent owned joint venture, Forefront Medical Technology, contributed $1.13 million to group earnings compared with $1.4 million previously.

VicPlas attributed the drop to lower sales prices and start-up expenses incurred prior to the commercial production of a new medical device.

Group pre-tax profit doubled to $1.7 million due mainly to improved sales at the pipes and fittings division, as well as a recovery of inventory that had been written off in the last financial year.

Earnings per share firmed to 0.64 cent from 0.32 cent previously while net asset value per share climbed to 7.15 cents compared with 6.51 cents as at July 31 last year.

No interim dividend was recommended.

Given the strengthening of the construction industry from the redevelopment of collective sales sites and the increase in the number of property developments, the company is optimistic that its pipes and fittings business will remain positive in the second half-year.

VicPlas shares yesterday ended unchanged at 13.5 cents.