Friday 29 Mar 2024
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KUALA LUMPUR (Nov 25): Shares in Ralco Corp Bhd rose as much as 30 sen or 66% to 75 sen to an intra-morning high after the plastic manufacturer reported a 70% year-on-year (y-o-y) increase in net profit for the third quarter ended Sept 30, 2020 (3QFY20).

As at the time of writing, the stock had risen 21 sen or 46.67% to 66 sen, with about 6.04 million shares traded. 

The stock, having soared 164% so far this year, was trading at a year-to-date (YTD) high among the top gainers on Bursa Malaysia this morning. 

Yesterday, the group said its net profit for 3QFY20 jumped to RM1.58 million from RM932,000 for the previous year. On a quarterly basis, the group’s earnings improved as well, compared to a net loss of RM1.34 million reported for 2QFY20.

Revenue also improved to RM14.68 million, a jump of 59% from RM9.24 million for 2QFY20, and an increase of 7% from a year ago.

In a filing, Ralco said the higher quarterly net profit was attributed to improvements in margins and lower general and administrative expenses. Furthermore, it said the improved revenue was mainly due to a combination of improved pricing and increased sales to certain customers.

Looking ahead, Ralco said while it will continue to operate in a challenging environment brought about by uncertainties over the Covid-19 pandemic, the group will continue to focus its efforts on controlling costs, improving production efficiencies and increasing productivity.

Edited BySurin Murugiah
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