Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 25): D&O Green Technologies Bhd’s net profit for the second quarter ended June 30, 2021 (2QFY21) soared 39 times to RM26.79 mil year-on-year (y-o-y) from RM686,000 previously.

The automotive LED maker, whose share price hit an all-time high of RM5.48 early this month, attributed the strong growth to improved gross margin as a result of higher sales volume and capacity utilisation, together with better cost management and productivity gains.

“Barring any unforeseen circumstances, the management expects earnings to improve in the second half of 2021,” said D&O in its filing with Bursa Malaysia.

Earnings per share for the quarter under review expanded to 2.04 sen from 0.06 sen a year ago.

Quarterly revenue soared 134% to RM208.65 million from RM89.16 million underpinned by increasingly strong demand for the group’s automotive LED, coupled with a low-base effect.

“Pre-tax profit surged more than 36-fold from RM1 million to RM37 million on a slower rate of increase (when compared to gross profit growth rate) in operating expenses and net other expenses, and lower finance costs,” said the group.

On a quarter-on-quarter comparison, net profit was nearly flat, 1.07% higher against RM26.5 million in the preceding quarter, while quarterly revenue was 1.46% more compared with RM205.65 million in 1QFY21.

“While customer order book continues to grow sequentially, D&O’s ability to supply in the current quarter was constrained by tighter Movement Control Order measures from June 1 2021,” it said.

For the six-month period ended June 30, D&O’s net profit jumped 11-fold to RM53.29 million from RM4.6 million. Six-months revenue doubled to RM414.3 million from RM207.35 million a year earlier.

On prospects, the group said D&O’s customer order book continues to be healthy.

As all employees have been fully vaccinated, D&O believes this will help to reduce the number of Covid-19 spike incidents and minimise any further plant shutdowns in the future.

The share price of D&O has soared 129% year to date. The stock closed at RM5.22, giving the group a market capitalisation of RM6.2 billion.

Edited ByKathy Fong
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