KUALA LUMPUR: Ann Joo Resources Bhd turned in a huge profit in the first quarter thanks to rising steel prices and stronger export demand.
Domestic demand, however, remained subdued, the steelmaker said in a filing with Bursa Malaysia today.
Ann Joo made a net profit of RM73.6mil in the three-month ended March 31 compared with a net loss of RM30.6mil a year ago.
Revenue increased to RM577mil from RM445.7mil previously.
The steel manufacturing and trading company attributed the improved results to higher profit margin given the rising selling price, which followed the upward trend of the international steel price.
"The rise in steel prices was fundamentally supported by the robust steel demand in China following the roll-out of its economic stimulus measures as well as its government’s efforts to reduce steel output, discourage steel exports and encourage the import of raw materials and semi-finished products,” Ann Joo said.