PETALING JAYA: Kossan Rubber Industries Bhd’s net profit for the second quarter ended June 30 more than doubled to RM131.06 million from RM55.88 million a year ago, mainly attributable to an improvement in the gloves and cleanroom division.
The group’s revenue increased by 27.5% to RM701.68 million compared with RM550.53 million in Q2’19.
For the six month period, Kossan’s net profit was up 70.90% to RM195.86 million from RM114.61 million, while revenue increased by 18.09% to RM1.31 billion as compared with RM1.11 billion in H1’19.
The group said its technical rubber products (TRP) division was impacted by the movement control order as well as the slowdown in the infrastructure and automotive industry as a result of the pandemic.
However, the TRP division only constitutes less than 4% of revenue currently, and has since resumed full operations after the government began easing the lockdown measures. The group expects this division will remain profitable.
“With our selling prices for gloves quoted 45-60 days before delivery, the increase in prices started to be reflected in June 2020 and we will definitely see a significant quarter-on-quarter increase in average selling prices in the Q3 and especially in the Q4 of FY2020.
“Premised on these and with additional capacity of around 15-20%, management is confident of a further step-up in revenue and profit growth on a quarter-on-quarter basis in Q3 and more significantly in Q4 of FY2020,“ Kossan said.
It also proposed a one-for-one bonus issue, which is expected to be completed by early Q4 of 2020.
source https://www.thesundaily.my/business/kossan-rubber-s-q2-net-profit-more-than-doubles-to-rm131-million-DD3647612
No comments:
Post a Comment