Did Mieco Chipboard Have A Turnaround??

Mieco Chipboard announced its earnings last night.

As I had blogged recently on Mieco back in May Update On Mieco Chipboard and also in June 2009, iCapital Is Now Holding A 'Paper' Loss of Over 76.5% In Its Investment In Mieco Chipboard!, I decided to take a look because I saw the header DJ TABLE: Mieco Chipboard 2Q Net MYR6.05M Vs Loss MYR3.70M!

WOW!

Could it be that Mieco finally had a turnaround?

But how can it be? A chipboard maker during such economic environment?

This is what I saw.

A pretax profit of 248 thousand? And the net profit ends up with 6.054 million? Hmm... there must be some sort of exceptional items.

Oh yeah, look at the 6 months earnings to date. A net loss of 16.594 million versus previous year amount of 7.553 million!

Yeah, Mieco is NOT doing good at all.

This morning I saw the following news clip: Bandar Raya Q2 profit triples

• Bandar Raya Q2 profit triples
  
  Published: 2009/08/11
  
  BANDAR Raya Developments Bhd (BDRB) said second quarter net profit almost tripled to RM40.6 million, mainly helped by better property sales and the recovery of its manufacturing business.
  
  Sales rose 11.1 per cent to RM231.19 million mainly helped by its property division, as its manufacturing sales fell by 55 per cent during the quarter.
  
  "Despite Mieco's turnaround in the second quarter of 2009, an overall full year loss is anticipated mainly due to the fixed costs of its plant in Lipis which has been temporarily closed as a result of the economic downturn," BRDB said in a statement.

Waaa... BDRB wants to take credit by promoting that its subsidiary (which it has been trying to sell/dispose of!) is seeing a turnaround!

So time for me to check out Mieco's earnings notes. :D

I did not have to look far. The answer was in the income statement.

Earnings boosted by tax credit!

And the folks at Bandar Raya (BDRB) wants to take credit for it!!!!

Life is grand like this la.

(ps: Mieco last traded at 36 sen. )