Analabs 2Q profit halves on higher operating costs

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KUALA LUMPUR (Dec 19): Analabs Resources Bhd's net profit for the quarter ended Oct 31, 2017 (2QFY18) fell by 53.6% to RM1.62 million from RM3.48 million a year ago, mainly due to higher operating expenses.

The higher spending was incurred in both the recovery and sale of recycled products and manufacturing, formulation and sale of resin, chemical and building materials, Analabs said in a Bursa Malaysia filing today.

Revenue for the quarter under review declined 11.5% to RM34.61 million, from RM39.11 million in 2QFY17.

The group’s earnings per share fell to 2.88 sen from 6.2 sen previously. It proposed a first interim dividend of one sen per share, with the entitlement and payment dates to be fixed.

Cumulatively, Analabs’ net profit for the first half of FY18 (1HFY18) fell 31.7% year-on-year to RM4.72 million from RM6.91 million, as revenue retreated 7.7% to RM73.56 million from RM79.68 million.

Moving forward, the group said it expects future contribution from its main business segment of manufacturing, formulation and sale of resin, chemicals & building materials to remain “stable”.

As such, its board of directors is “cautiously optimistic” on the group's future prospects.

Analabs shares closed unchanged at RM2.22 today, giving it a market capitalisation of RM124.55 million.