Friday 29 Mar 2024
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KUALA LUMPUR (July 27): Sino Hua-An International Bhd’s net profit for the second quarter ended June 30, 2018 (2QFY18) dipped 88% to RM2.53 million from RM21.99 million a year ago due to lower average selling prices of metallurgical coke as well as relatively lower sales volume.

Earnings per share fell to 0.23 sen from 1.96 sen per share in 2QFY17.

Revenue fell 7% to RM240.33 million from RM259.02 million a year ago.

In a filing today, it said the average selling price of metallurgical coke had declined by approximately 7% to RMB1,836 during the current quarter from RMB1,968 in the preceding year’s corresponding quarter. The sales volume was also lower by approximately 5% in the second quarter of 2018 compared with previous year corresponding quarter.

“However, the overall contribution from the by-products has increased by approximately 30% during the current quarter compared to that of the preceding quarter. This was primarily attributed to the increase in the prices of ammonium sulphate, tar oil and coal gas of 19%, 24% and 34%, respectively.

“However, such surge in the contribution from the by-products in itself was insufficient to negate the effects of the decline in the selling price and sales volume of the main product i.e. metallurgical coke,” it said.

This brought Sino Hua-An’s first half net profit to RM8.09 million, dropping 61% from RM20.97 million the previous year, although revenue increased 46% to RM505.86 million from RM345.72 million a year ago.

Moving forward, the group said it remains cautiously optimistic of the coke industry and will continue to be vigilant to relevant consequential circumstances that may have perceivable effects on the metallurgical coke business.

Sino’s shares closed down one sen or 2.7% on Friday to 36 sen, with 35.01 million shares traded, giving it a market capitalisation of RM404.03 million.

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