CB Industrial Product Holding Bhd (-ve)

SHARES in CB Industrial Product Holding Bhd’s (CBIP) (fundamental: 1.55/3, valuation: 1.4/3) fell two sen or 2.08% to 94 sen yesterday after some 1.16 million shares were traded, about five times its 200-day average volume of 233,003.5 shares.

CBIP yesterday announced an interim dividend payment of two sen per share for the financial year ending Dec 31, 2019, despite posting weaker year-on-year results for the third quarter ended Sept 30, 2019.

Last Friday, CBIP reported a net profit of RM746,000, down 92% from RM9.02 million for the preceding year’s corresponding quarter, although revenue rose 22% to RM101.92 million from RM83.6 million.

For the cumulative nine months, its net profit declined 71% to RM13 million from RM44.3 million a year earlier. Its revenue fell 25% to RM280.24 million from RM372.99 million.

CBIP attributed the performance decline to losses incurred by its special purpose vehicles and palm oil segment, as well as share of losses of associates and joint ventures. CBIP is trading at 0.65 times its net asset value.