KUALA LUMPUR: Elk-Desa Resources Bhd
will continue to sustain a growth trajectory by expanding its hire-purchase receivables with a growth target in the lower to mid teens, said executive director and chief financial officer Teoh Seng Hee.
This comes following a tepid performance in the first quarter of its financial year ended June 30, 2024, which Teoh said was reflective of the operating landscape.
The non-bank lender announced in a stock exchange filing that its quarterly bottomline slipped slightly to RM8.14mil from RM8.5mil in the previous corresponding quarter.
This translated to a lower earnings per share of 1.79 sen compared to 1.87 sen in 1QFY24.
The smaller net profit was registered despite a 17% jump in revenue on a year-on-year basis to RM45.88mil due to an increase in impairment allowance and other expenses.
According to the group, the increase in revenue was a result of higher contribution from both its hire purchase and furniture segments.
Elk-Desa's hire purchase receivables as at June 30, 2024 stood at RM668.34mil, a 16% improvement against the previous year’s RM574.47mil.
"We intend to keep a close eye on potential economic headwinds that may stem from changes to domestic policy on subsidies and price controls, slower than expected growth in key economies and the increasing cost of domestic goods," said Teoh.
He said Elk-Desa will also pay special attention to driving down the impaired loans ratio.
For the furniture segment, Teoh said Sabah and Sarawak remain exciting markets and the group plans to enhance its logistics capabilities while offering customers more in terms of diversity and range of products in order to become more competitive in this space.
