KUALA LUMPUR (Nov 18): Higher gold prices lifted Tomei Consolidated Bhd's earnings for the third quarter ended Sept 30, 2019 (3QFY19), as it reported a net profit of RM2.08 million, as opposed to a net loss of RM2.41 million a year ago.

This is despite revenue falling 19% to RM118.72 million from RM146.08 million, Tomei said in a stock exchange filing today.

International gold price soared to about US$1,550 per ounce (oz) during the quarter, from approximately US$1,400 per oz previously, Tomei said.

While the sudden escalation of gold price had dampened the demand for gold, Tomei said it had managed to improve its margin and consequently boost earnings.

For the nine month period (9MFY19), its net profit ballooned to RM6.06 million, 12.5 times higher from RM486,000 last year, though revenue slipped 7% to RM397.57 million from RM425.61 million.

On prospects, the board of directors opined that the group will remain profitable for the year, barring any unforeseen circumstances. "The group will continue with its rationalization strategy of improving sales volume through the introduction of more new designs and at the same time, take steps to contain its operating costs," Tomei added.

Tomei shares closed one sen or 2.33% lower at 42 sen today, valuing the company at RM58.21 million.