KUALA LUMPUR (Aug 26): Steelmaker Ann Joo Resources Bhd reported a net profit of RM83.7 million for the second quarter ended June 30, 2021 (2QFY21), compared with a net loss of RM56.72 million a year ago.

The group attributed this to higher sales and improved profit margins resulting from a higher selling price, which were fundamentally driven by a robust recovery in China demand.

Meanwhile, export prices remained significantly higher than in 2QFY20, despite the price correction triggered by China’s efforts to cool the overheating commodity prices in mid-May, said the group in a bourse filing.

Quarterly revenue soared 94.88% to RM674.07 million, from RM345.89 million a year earlier, on higher selling price and export tonnage, partly offset by lower domestic sales tonnage due to mandatory business closures during the total lockdown.

On a quarter-on-quarter basis, net profit rose 13.67% from RM73.61 million in 1QFY21, while revenue grew 16.89% from RM576.69 million.

The group declared a first interim dividend of six sen per share, to be paid on Oct 14.

For the first half of FY21, Ann Joo said the group posted a cumulative net profit of RM157.31 million, compared with RM87.28 million in the previous year, as six-month revenue rose 58.01% to RM1.25 billion, from RM791.56 million.

Looking ahead, the group said it will continue to focus on exports, riding on the recovery of the global market.

Shares of Ann Joo rose 7.91% or 17 sen to close at RM2.32 today, giving the group a market capitalisation of RM1.3 billion. The stock has gained 52.63% year-to-date.