LB Aluminium 1Q net profit surges to RM12.5m

Its revenue grew 98.22% to RM227m from RM114.54m previously due to improvements in both its aluminium and property segments

by ANIS HAZIM / pic credit: lbalum.com

LB ALUMINIUM Bhd’s net profit for the first quarter ended July 31, 2022 (1QFY23) jumped fourfold to RM12.51 million from the preceding year due to better performance due to the better performance of its aluminium segment.

Its revenue grew 98.22% to RM227 million from RM114.54 million previously due to improvements in both its aluminium and property segments.

Earning per share rose to 2.88 sen against 70 sen in the same quarter last year, according to its exchange filing today. The company did not declare any dividend for the current quarter under review.

On a quarterly basis, the group’s net profit fell 26.64% from RM17 million in the immediate preceding quarter, while revenue increased 5% from RM216.12 million in 4Q21.

Moving forward, LB Aluminium expects the global demand for aluminium will sustain despite the rising global inflationary pressures.

“The group’s aluminium business is expected to be bright, supported by sustainable orders from local and overseas customers.

“The recent stabilisation of the global aluminium prices also augurs well for the group as aluminium is our primary raw material,” it said.

On the property segment, LB Aluminium associate company Vistarena Development Sdn Bhd has completed the development of the Residensi Platinum OUG project in June 2022. It is currently delivering vacant possession to the house buyers. 

“Barring unforeseen circumstances, the board is cautiously optimistic that the group will be profitable for the forthcoming quarter,” it added.

LB Aluminium’s share closed unchanged at 48 sen, giving it a market capitalisation of RM204.45 million.