KUALA LUMPUR (Nov 29): Ann Joo Resources Bhd's net profit for the third quarter ended Sept 30, 2021 (3QFY21) fell 17.46% quarter-on-quarter (q-o-q) to RM69.08 million from RM83.7 million in 2QFY21 as revenue declined, mainly on lower export sales tonnage amid price volatility in the international market.

The steelmaker's revenue dropped 39.81% to RM405.69 million from RM674.07 million previously, its filing with the local bourse showed. Earnings per share fell to 12.74 sen from 15.48 sen.

Nevertheless, Ann Joo has returned to the black compared with a year ago, when it reported a net loss of RM18.92 million in 3QFY21, primarily due to improved profit margins resulting from higher selling price, which were driven by a robust recovery in China demand. This is despite revenue declining 27.58% year-on-year from RM560.21 million on lower export sales.

For the nine months ended Sept 30, 2021 (9MFY21), Ann Joo posted a net profit of RM226.39 million versus a net loss of RM106.19 million a year earlier, again on stronger profit margins due to higher selling price, while revenue grew 22.54% to RM1.66 billion from RM1.35 billion.  

On prospects, Ann Joo said steel demand is expected to recover in 2022, fundamentally supported by the country’s ongoing pump priming.

To alleviate challenges of the Covid-19 pandemic, the group said it will remain focused on exports, riding on the recovery of the global market.

“The group will continue its focus on cost optimisation initiatives and operational efficiency, as well as prudent receivables management to remain resilient and responsive to market changes,” it added.

Ann Joo’s shares slipped nine sen or 4.66% to close at RM1.84 on Monday (Nov 29), giving the group a market capitalisation of RM1.04 billion. Year-to-date, the counter has risen 21.05%.