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KUALA LUMPUR (March 22): Steelmaker Ann Joo Resources Bhd’s net profit fell 68% to RM6.21 million in the fourth quarter ended December 31, 2020 (4QFY20) from RM19.52 million reported in the year above, due to lower revenues due to lower sales tonnage and higher overhead costs amid plant shutdowns due to motion control order restrictions.
Its quarterly revenue plunged 10.65% to RM 539.42 million from RM 603.71 million, its listing showed today. The group did not announce dividends.
However, compared to the immediately prior quarter of 3QFY20, the steelmaker returned to the black point of a net loss of RM18.92 million, although revenue fell RM560.21 million on lower export tonnage.
Meanwhile, for the full fiscal year 2020, the group’s net loss widened to RM99.99 million from RM89.86 million, while annual revenue fell 14.9% to RM1.89 billion from RM2.22 thousand. million, driven by lower average sales prices and lower registered domestic sales tonnage. throughout the year.
Going forward, the group expects 2021 to be a challenging year for the steel industry as the local demand outlook remains uncertain following the impact of Covid-19 on construction activities.
“The group will continue to focus on exports, in light of the continued demand expected from the China and Southeast Asian markets.
“The construction boom in China, which is fundamentally supported by the government’s efforts to boost the economy, should boost demand in the medium term,” he said.
Ann Joo’s stock closed nine sen or 4.21% higher at RM2.23 today, giving her a market capitalization of RM1.25 trillion.
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