EKSONS ... Apr11

Its growth catalyst is that the bulk of the RM221 million sales achieved in the property division will be recognised in the financial year ended March 31, 2011 (FY11) and FY12.

Also, the plywood manufacturer could possibly benefit from the anticipated rising demand in Japan for timber products in the aftermath of the earthquake.

Eksons’ joint venture mixed commercial development in Seri Kembangan, Selangor, The Atmosphere,  has secured RM221 million in sales, of which only RM31 million has been recognised to-date. The rest will filter in over the next two years.

Eksons posted a net profit of RM27.9 million or 17.04 sen per share on a revenue of RM279.1 million for FY10 ended.

For the nine months ended Dec 31, the company made a net profit of RM21.5 million, an increase of almost 20% from RM18 million in the previous corresponding period.

The recognition of the RM190 million sales from the property division in FY12 and FY13 will apparently be a big boost to Ekson’s earnings.
On the timber business, which is currently the biggest profit contributor, Eksons was in negotiations to start exports to Japan to take advantage of the current tight supply there in the aftermath of the earthquake.

For FY10, the manufacturing division posted a pre-tax profit of RM14.4 million, which was 59% of group’s pre-tax profit of RM24.5 million.

The bulk of Eksons’ wood products is exported to the Middle East, which contributes 60% to 70% to group revenue.