KUALA LUMPUR (22 March): Steelmaker Ann Joo Resources Bhd's net profit fell 68% to RM6.21 million in the fourth quarter ended Dec 31, 2020 (4QFY20) from RM19.52 million reported in the previous year, on the back of lower revenue due to lower sales tonnage and higher overhead cost amid plant shutdowns due to Movement Control Order restrictions.

Its quarterly revenue sank 10.65% to RM539.42 million from RM603.71 million, its stock exchange filing today showed. The group did not announce any dividends.

Compared with the immediate preceding quarter of 3QFY20, however, the steelmaker returned to the black from a net loss of RM18.92 million, though revenue dropped from RM560.21 million on lower export tonnage. 

Meanwhile for the full FY20, 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 billion, fuelled by lower average selling prices and lower domestic sales tonnage registered in the whole year.

Moving forward, the group expects 2021 to be a challenging year for the steel industry as local demand outlook remains uncertain following the impact of Covid-19 on construction activities.

"The group will continue to focus on exports, in view of the expected continued demand from China and Southeast Asian markets.

"The construction boom in China, which is fundamentally supported by the government's efforts to pump-prime the economy, should bolster demand in the medium term," it said.

Shares of Ann Joo ended nine sen or 4.21% higher at RM2.23 today, giving it a market capitalisation of RM1.25 billion.