KUALA LUMPUR (Feb 17): Classic Scenic Bhd posted a 22.94% increase in its net profit to RM4.15 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), from RM3.38 million a year ago, thanks mainly to the strong US dollar and lower operating expenses.

Quarterly revenue was marginally lower at RM17.72 million, compared with RM17.90 million previously, amid lower export volume of wooden picture frames and moulding, the wooden picture frame mouldings manufacturer said in a bourse filing.

For the full year (FY2022), the group’s net profit jumped 196.41% to RM18.99 million — the highest since the group’s listing in 2004 — from RM6.41 million in FY2021. Earnings per share surged to 7.85 sen from 2.66 sen.

Full-year revenue climbed 61.78% to a record RM78.88 million, from RM48.76 million in FY2021.

The better financial performance was driven by significantly higher export sales, more efficient use of raw materials and the strengthening of the US dollar, the group said.

Looking ahead, Classic Scenic managing director Samuel Lim Chee Beng said the recently released US economic data indicated a resilient US economy with expectations of a softening inflation.

“Coupled with a resilient labour market with low unemployment, it would likely drive consumer spending on non-interest-rate-sensitive items, which would bode well for the group,” Lim said in a statement.

Separately, the group proposed a one-for-one bonus issue of up to 361.5 million shares, with the entitlement date to be determined later. The exercise is expected to be completed in the second quarter of 2023.

Based on the lowest volume weighted average market price (VWAP) during the past three months and a five-day VWAP, the theoretical ex-bonus price for Classic Scenic’s shares is expected to range between 53.14 sen and 54.03 sen.

Classic Scenic’s share price closed one sen or 0.91% higher at RM1.11 on Friday (Feb 17), giving the group a market capitalisation of RM274.91 million.