PETALING JAYA: The strengthening ringgit against the US dollar augurs well for LB Aluminium Bhd as its primary raw material – aluminium – is priced in US dollars, the group says.
In addition, the aluminium extrusion manufacturer is also benefiting from the stabilisation of global aluminium prices.
“Moving forward, we are positive of the prospect for the aluminium segment as we expect demand to be sustained given the growth trajectory of the Malaysian economy as well as that of the global economy,” it told the stock exchange yesterday.
For the property segment, LB Aluminium said the accumulated sales and construction progress of the Satu Anggota Satu Rumah (SASaR) project were 44.5% and 12.3% respectively.
The project’s take-up rate is expected to improve as the property subsidiary continues to execute more sale and purchase agreements.
“Barring unforeseen circumstances, the board is cautiously optimistic that the group will be profitable for the forthcoming quarter,” it said.
LB Aluminium reported yesterday that its net profit for the second quarter ended Oct 31 surged by almost 81% year-on-year (y-o-y) to RM12.35mil. With the improved profitability, LB Aluminium’s earnings per share rose to 2.84 sen.
Revenue increased by 29.74% y-o-y to RM206.09mil.
“The group’s aluminium segment reported revenue of RM188.34mil. The increase of 18.6% was due mainly to higher average selling prices compared to the previous year corresponding quarter.
“The group’s property segment reported revenue of RM17.75mil from its SASaR project in Bandar Tasik Selatan with accumulated sales and development progress of 44.5% and 12.3% respectively,” LB Aluminium said.
No dividend was declared for the quarter.
Cumulatively, for the first six months ended Oct 31, net profit jumped by more than two-fold to RM24.86mil from RM9.87mil in the previous corresponding period.
Revenue also increased by 58.44% y-o-y to RM433.15mil. The group’s aluminium segment reported revenue of RM398.43mil in the six-month period compared to the preceding year’s corresponding period of RM273.39mil.