Friday 29 Mar 2024
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KUALA LUMPUR (May 26): Ann Joo Resources Bhd expects gains from the recent steel price rally to be reflected in its earnings for the second quarter ending June 31, 2016 (2QFY16) and subsequent quarters.

Its managing director Datuk Lim Hong Thye said the rally in March and April had enabled the group to clear up its inventory, which had been piling up last year after sales were badly hit by cheap imports from China.

"The upturn (in steel prices) is what we were waiting for to clear our inventory," he told reporters after the group's annual general meeting today.

"But of course, being a domestic steel mill operator, Ann Joo's performance will still depend on the China dumping factor, and whether the government would give its support to the industry," he added.

Lim said that while steel prices have normalised this month, Ann Joo's operation is efficient enough to be profitable.

"We do not foresee that steel prices would fall to a level like last year, but even if it drops by another 10%, we are still comfortable," he said.

As at 3:06pm, Ann Joo's share price was trading at 99 sen, down by half sen or 0.5%, valuing the company at RM498.1 million.

 

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