KUALA LUMPUR (Dec 7): LB Aluminium Bhd’s share price rose more than 5% in active trade early on Wednesday (Dec 7), following the aluminium extrusion manufacturer’s net profit jumping 81% year-on-year for the second quarter ended Oct 31, 2022 (2QFY2023).
As at 10.20am, LB Aluminium had risen 5.68% or two and a half sen higher at 46.5 sen a share, with over 2.46 million shares done. Year to date, the stock has climbed 13.41%.
On Tuesday, the company said its net profit rose to RM12.35 million for 2QFY2023, from RM6.83 million for 2QFY2022, thanks to higher average selling prices and improved margins for its aluminium product segment.
Quarterly revenue increased by 30% to RM206.09 million, from RM158.84 million for the same period a year earlier.
For the cumulative six months ended Oct 31, 2022 (1HFY2023), net profit more than doubled to RM24.86 million from RM9.87 million for 1HFY2022, while revenue grew 58% to RM433.15 million from RM273.39 million.
Going forward, the group said stabilising global aluminium prices and the strengthening of the ringgit against the US dollar augur well for its prospects, as its raw material is priced in US dollars.
The group, which is 30% owned by executive chairman Tan Sri Leow Chong Howa, also expects demand for its aluminium products to be sustained, given the growth trajectory of Malaysia and the global economy.