Ajiya posts 10% fall in 4Q net profit, says outlook remains challenging

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KUALA LUMPUR (Jan 20): Safety glass and metal roofing maker Ajiya Bhd’s fourth quarter net profit fell 10.45% to RM1.6 million or 0.54 sen per share, from RM1.79 million or 0.6 sen per share a year earlier, on the back of lower revenue.  

Revenue for the quarter ended Nov 30, 2019 (4QFY19) decreased 10.86% to RM81.73 million from RM91.69 million, mainly due to lower demand for the group’s products, the group said in a filing with Bursa Malaysia.  

For the full financial year (FY19),  Ajiya’s net profit plunged 77.31% to RM5.58 million from RM24.59 million in the previous year.  Revenue fell 14.81% to RM325.62 million from RM382.62 million. 

On its prospects, Ajiya said the outlook remains challenging due to the continuing glut in market conditions of the construction sector, which may slow down the group's revenue growth. 

“Nevertheless, the group has taken measures to weather through these challenges. The focus on operational efficiency and other business opportunities will be stepped up, in its pursuit to achieving a firmer foundation for sustainable long term growth,” it added. 

Ajiya's share price closed 1.5 sen or 3.3% higher at 47 sen today, valuing the group at RM139.73 million. Some 499,500 shares exchanged hands.