KUALA LUMPUR (July 21): KYM Holdings Bhd expects to turnaround in current financial year ending January 31, 2016 (FY16), after restructuring its loss-making corrugated carton business.

KYM's (fundamental: 0.55; valuation: 0.9) chairman Datuk Seri Isahak Yeop Mohamad Shar said the company should be able to turnaround in FY16, as the company had undertaken cost-efficiency measures.

"We started the cost saving efforts early last year. It should be showing some positive results in mid-year,"  Isahak Yeop told reporters after KYM's annual general meeting today.

He expects KYM's revenue growth to be maintained at 10% in FY16. During FY15, net loss stood at RM2.95 million against higher revenue of RM99.36 million from a year earlier.

In 1QFY16, KYM's net loss widened to RM746,000, as compared to a net loss of RM509,000 a year earlier. Revenue was higher at RM25.66 million versus RM23.71 million.

Today, Isahak Yeop said KYM was looking at divesting its non-core assets. He said the company was in talks to divest two residential tracts in Perak, one each in Lumut and Ipoh.

KYM owns 28ha (70 acres) in Lumut and 17 ha (43 acres) in Ipoh.

Proceeds from the land sale will be used for KYM's business expansion, according to him.

KYM's shares have not been traded so far today. The stock's latest closing price was 55 sen on July 10 this year, for a market capitalisation of RM82.4 million.

As at April 30 this year, KYM's net assets per share stood at 61 sen.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)