Quantum leap in ES Ceramics 2Q net profit

Quantum leap in ES Ceramics 2Q net profit
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KUALA LUMPUR (Jan 21): Ceramic glove mould maker ES Ceramics Technology Bhd's net profit for its second quarter ended Nov 30, 2021 (2QFY22) soared 252% year-on-year to RM14.14 million from RM4.01 million a year prior, amid higher revenue and improved production activities.

ES Ceramics' quarterly revenue improved by 117% to RM33.85 million from RM15.59 million in the previous year while its earnings per share jumped correspondingly to 2.8 sen from 0.87 sen, according to its financial results released on Friday (Jan 21).

Despite the strong performance, ES Ceramics did not declare a dividend for the quarter.

For its cumulative six months ended Nov 30, 2021 (1HFY22), ES Ceramics generated a net profit of RM23.58 million, a nearly 227% spike from RM7.21 million a year ago, while revenue jumped 115% to RM59.32 million from RM27.53 million for the same period, its filing showed.

Its cumulative earnings per share for 1HFY22 almost tripled to 4.67 sen from 1.57 sen.

In its filing, ES Ceramics said the improvement in financial performance for 1HFY22 was mainly attributable to higher sales output from additional production capacities, improved production activities and higher selling prices.

Comparing its financial performance to its immediate preceding quarter ended Aug 31, 2021 (1QFY22), ES Ceramics notched a 49.7% improvement in net profit from RM9.44 million. Its quarterly revenue jumped by one-third from RM25.47 million.

ES Ceramics' management commented that the pandemic measures taken by governments around the world will affect the global business environment including the essential services industry and the supply chain.

"The prospects for growth in the rubber glove industry are positive as the industry is expected to continue to be driven by the growth in the global and domestic healthcare industry as one of the essential items in the medical supplies.

"The company will continue to execute its business strategies to capitalise and strengthen its position in the industry whilst adopting prudent cash flow management to meet its financial commitments and obligations," the filing wrote.

At market close on Friday, ES Ceramics were unchanged at 36 sen.

It currently has a market capitalisation of RM181.89 million based on 505.24 million shares while trading at 4.16 times to its last 12 months' earnings, based on Bloomberg data.

Kathy Fong