KUALA LUMPUR: Shares in BP Plastics Holding Bhd climbed to a record high in early trade Monday after posting a record profit and revenue for the second financial quarter ended June 30, 2021 (2Q21).

The polyethylene film manufacturer advanced 10.53%, or 20 sen to RM2.10 at 9.08am. Year-to-date, it has appreciated almost 50%.

Its net profit jumped 74.4% to RM14.77mil in 2Q21 against RM8.47mil a year ago. Revenue for the quarter rose 35.7% to RM108.95mil from RM80.29mil.

The Board of Directors of the company proposed a second single tier interim dividend of 2 sen per share in respect of the financial year ending Dec 31.

In addition, the Board of Directors also declared a special single tier dividend of 1 sen per share for the financial year ending Dec 31.

For the first six months to June 30, BP Plastics’ net profit surged 66.4% to RM24.44mil from RM14.69mil last year. Its revenue grew 32.4% to RM209.01mil from RM157.89mil.

Kenanga Research said BP Plastics’ 1HFY21 core net profit (CNP) of RM24.6milcame above expectation, at 68% of its FY21 estimate.

It added that 2QFY21 dividend per share (DPS) of three sen brought 1HFY21 DPS to 6.0 sen, which is above its estimate of 9.0 sen.

“Hence, we raise FY21-22E CNP (by 25-27%) as we remain bullish on BP Plastics’ continued growth from robust demand and capacity expansion.

“Maintain outperform with a new target price of RM3.15 at 13x PER on FY21E EPS of 24.1 sen,” Kenanga said.