Formosa Prosonic rises as much as 14% on strong 3Q results

Formosa Prosonic rises as much as 14% on strong 3Q results
-A +A

KUALA LUMPUR (Nov 20): Formosa Prosonic Industries Bhd rose as much as 26 sen or 14.05% today to RM2.11 after it posted stellar third quarter results.

At 11.09am, the stock pared some gains at RM2.06, still up 21 sen or 11.35%.

The counter, which was among the top gainers, saw 7.36 million shares changed hands.

The group announced yesterday that its net profit for the third quarter ended Sept 30, 2020 (3QFY20) surged 62.66% to RM25.84 million from RM15.89 million a year ago, driven by higher sales volume.

Its revenue for 3QFY20 also rose 7.84% to RM281.05 million from RM260.61 million.

For the nine months ended Sept 30, 2020, the group’s net profit increased by 21.24% to RM39.69 million from RM32.74 million a year earlier.

Its revenue for the period fell 13.15% to RM513.18 million from RM590.86 million.

The group said its revenue fell in the nine-month period because it shut down its operations from March 18, 2020 in compliance with the Movement Control Order imposed by the government in an effort to contain the outbreak of Covid-19 pandemic.

“The group resumed its operations at end of April 2020. Nevertheless, the group recorded higher earnings before interest, taxes, depreciation, and amortization of RM60 million for the nine-month period compared to RM51.6 million in the previous year’s corresponding period mainly due to change in sales mix,” it said.

Despite the challenging environment, the board of directors expects the group to achieve profitable results for the financial year ending Dec 31, 2020 on the back of healthy sales orders.

“Nonetheless, in view [that] the existing threat of Covid-19 outbreak still remains, the group will continue to monitor the market situation closely and take necessary steps to minimize any adverse impact to operations and will optimize its operations to adapt to volatile business environment,” it said.

Surin Murugiah