Source: The Edge
Ann Joo Resources Bhd saw its net profit rise 20.9% to RM55.52 million in the fourth quarter ended Dec 31, 2017 (4QFY17) from RM45.94 million a year ago on improved margin.
This was despite higher cost of sales on time lag effect of raw material and fuel (coke) cost and recognition of overhead cost for scheduled plant maintenance and upgrading works in the current quarter under review, it said.
This resulted in higher earnings per share of 10.82 sen compared with 9.18 sen in 4QFY16.
Quarterly revenue also increased 29.2% to RM610.15 million in 4QFY17 from RM472.14 million in 4QFY16, mainly contributed by higher selling prices, in line with the up-trend of international steel prices.
In a filing with Bursa Malaysia today, Ann Joo said the performance was further supported by higher tonnage sold on continued improvement in domestic demand from construction progress of various infrastructure and large-scale development projects.
The group also declared an interim dividend of 13 sen per share for the financial year ended Dec 31, 2017 (FY17), payable on May 21.
For the full FY17, its net profit jumped 23.1% to RM205.38 million from RM166.78 million the previous year, while revenue grew 17.4% to RM2.2 billion from RM1.87 billion in FY16.
Going forward, Ann Joo said the group remains optimistic about its business and industry outlook in the near to medium term, driven by China's continued efforts to control steel capacity replacement and broad-based up-trend in global and regional steel demand.
Other drivers include expected robust domestic demand on accelerating construction activities and the US's Section 232 investigation and potential measures on steel imports.
"While these measures, if implemented, could impact steel export markets globally, we note that Ann Joo is not exporting to the US. As such, we do not foresee any direct impact on our operations at this time," it said.
Ann Joo shares closed 5 sen or 1.37% higher at RM3.70 today, with 842,400 shares done, bringing a market capitalisation of RM2 billion.