KUALA LUMPUR (Sept 27): LB Aluminium Bhd’s net profit for the first quarter ended July 31, 2022 (1QFY23) surged 311% to RM12.51 million from RM3.04 million in the same quarter last year, mainly due to better performance in its aluminium segment. 

Profit before tax for the aluminium segment soared 626.3% to RM15.04 million from RM2.07 million in 1QFY22, mainly due to higher revenue, coupled with better margins, the group said in a bourse filing on Tuesday (Sept 27). 

Revenue for the quarter under review also jumped 98.23% to RM227.06 million from RM114.54 million previously, due to improvements in both the aluminium and property segments. 

Its aluminium segment recorded higher revenue of RM210.09 million compared with RM114.54 million in 1QFY22, due to higher sales volume and selling prices. 

“The group’s property segment started to recognise revenue from its Satu Anggota Satu Rumah (SASaR) project in Bandar Tasik Selatan. Since its launching in May 2022, the SASaR project has achieved a revenue of RM16.97 million, with cumulative sales and construction progress of 26.7% and 10.0% respectively,” it said. 

Moving forward, the group said its aluminium business is expected to be bright, supported by sustainable orders from local and overseas customers. 

“The recent stabilisation of the global aluminium prices also augurs well for the group, as aluminium is our primary raw material. We will continue improving our product quality, delivery lead time, and after-sales service to our customers,” said LB Aluminium. 

For the property segment, the group’s associate, Vistarena Development Sdn Bhd, had in June 2022 completed the development of the Residensi Platinum OUG project. 

“Vistarena is in the midst of delivering vacant possession to the house buyers. 

“Meanwhile, the group’s subsidiary, Pembinaan Serta Hebat Sdn Bhd, has achieved cumulative sales and construction progress of 26.7% and 10.0% respectively, for its SASaR project. 

“Barring unforeseen circumstances, the board is cautiously optimistic that the group will be profitable for the forthcoming quarter,” it added. 

Shares in LB Aluminium closed unchanged at 47.5 sen on Tuesday, for a market capitalisation of RM204.45 million.