NAIM Fundamentally Strong, Achieves PBT of RM84M For 2008

Naim Cendera Holdings Berhad (Naim) which achieved unaudited profit before tax of RM84.4 million for the financial year ended 31 December 2008 is fundamentally strong, assures its Chief Financial Officer, Encik Ahmad Abu Bakar.

Saying this following release of Naim’s FY2008 results recently, he stated that the profit was achieved on the back of revenue of RM523.4 million.

He lamented that Naim’s share price, currently hovering at around RM1.30 which was its IPO price when the Group went public in September 2003, does not reflect its value. The Group has grown tremendously since its listing five and a half years ago.

Naim’s net profit was RM48.48 million in 2003 while despite the current poor economic climate, they still returned a net profit of RM62.51 million, a 28.9% improvement. The revenue of RM523.4 million achieved in 2008 was almost double the RM270.9 million recorded for 2003.

Shareholders equity has grown from RM352.2 million to RM569.4 million as at 31 December 2008 while total assets grew 65.8% from RM567.3 million to RM940.9 million. Net Tangible Asset (NTA) per share, meanwhile grew 50% from RM1.52 to RM2.28.

Ahmad explained that the Group’s efforts in controlling costs and overheads since mid-2007 in anticipation of an economic downturn then, has borne fruit. This is reflected in its ability to maintain its gross margin at a respectable 19.4% compared with 21.6% the previous year. Net margin improved marginally from 11.8% in 2007 to 11.9% in 2008. Its 36% owned associate, Dayang Enterprise Holdings Berhad continued to contribute positively to the performance of the Group for the year.

He does not expect any significant improvement in the economic situation in the country over the next 12 months. However, with the measures put in place and with a locked-in revenue of over RM1.1 billion, Naim expects to continue to perform favorably in 2009, baring any unforeseen circumstances.

He advised that his Board has approved payment of a second interim dividend of 5 sen tax exempt for the financial year ended 31 December 2008 to be paid on 6 April 2009 to shareholders whose names appear on their register of members on 16 March 2009, bringing the total dividends for FY2008 to 13 sen per share.