Posted on 25 Aug 2022
Malaysian steel maker YKGI saw its net profit for the second quarter ended Jun 30 rise marginally to MYR 1.42 million ($320,000) from MYR 1.4m a year ago, Kallanish notes.
The higher profitability was due to higher sales revenue despite the gross margin being lower compared to 2Q21.
The group's revenue for the second quarter also increased by 25.03% to MYR 75.71m from MYR 60.55m mainly due to higher steel price despite a lower sales volume.
For the first half ended Jun 30, the group's net profit plunged 77.75% to MYR 603,000 from MYR 2.71m a year earlier, while its revenue grew 12.83% to MYR 133.87m from MYR 118.65m.
On prospects, the group says the fear an economic slowdown is gripping financial markets, and steel prices have tumbled from their peak, reversing the bullish developments which prevailed in the steel sector over the last year.
Rising global interest rates will affect consumer sentiment which will impede economic growth, it adds.
Given the current scenario, the group is cautiously optimistic on its performance for the rest of the year.
Source:Kallanish
