SCIB shares rise on firmer 1Q results, dividend policy

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KUALA LUMPUR (June 18): Shares in Sarawak Consolidated Industries Bhd (SCIB) were up by as much as 13.86% today, after the group announced a 170% rise in its first quarter ended March 31, 2020 (1QFY20) net profit and a dividend policy of at least 30% of profit per financial year.

At 10:28am, SCIB shares were still up, trading 5.45% or 11 sen higher at RM2.13 apiece, valuing the company at some RM261.02 million.

In terms of volume, the counter saw some 3.06 million shares traded, higher than its 200-day average trading volume of 456,836 shares.

SCIB reached an intra-morning high of RM2.30 a mere two minutes after the opening bell was sounded at the local bourse today, but slipped to a low of RM2.11 by mid-morning.

The group’s 1QFY20 net profit increased 170% to RM4.28 million from RM1.59 million last year due to higher revenue, which swelled by 198% year-on-year to RM51.78 million from RM17.44 million.

The higher revenue was pinned to construction contract revenue generated both locally and abroad.

SCIB's new dividend policy will exclude any unrealised income from adjustments due to accounting policies that are non-cash in nature.