Teck Guan 2Q net profit surges 127% to RM5.49m on higher operating margin

TheEdge Thu, Sep 30, 2021 09:50am - 2 years View Original


KUALA LUMPUR (Sept 30): Teck Guan Perdana Bhd's net profit for the second quarter ended July 31, 2021 (2QFY22) jumped 127% year-on-year (y-o-y) to RM5.49 million, from RM2.43 million previously, despite a dip in revenue to RM95.05 million versus RM181.05 million.

In a bourse filing on Thursday, the group attributed the solid earnings to an increase in its operating margin.

Earnings per share (EPS) jumped to 13.7 sen from 6.05 sen.

The group did not declare any dividend.

For the six months ended July 31, 2021 (1HFY22), net profit fell 41% to RM3.96 million, from RM6.71 million, on the back of a 39% decline in revenue to RM150.64 million from RM245.79 million.

The decrease in revenue was mainly attributed to a decrease in sales volume.

On its current-year prospects, Teck Guan said the current palm-based industry continues to remain challenging, influenced by uncertainties in both the local and macroeconomic landscapes brought about by the ongoing Covid-19 pandemic.

“Nevertheless, in the face of external volatility and adversity, management is cautiously optimistic and committed to ensuring sufficient avenues to manage future challenges.

“However, management will continue to intensify its efforts to focus on enhancing productivity together with operating cost optimisation to mitigate the negative impact on its profitability and liquidity so as to achieve a sustainable future,” it said.

Trading of shares in Teck Guan was halted for one hour from 9am on Thursday.

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