October 07, 2008

Ann Joo Resources Q1 net profit jumped three fold to MYR 104 million

It is reported that Ann Joo Resources Bhd’s net profit jumped more than threefold to MYR 104.94 million in the first quarter ended March 31st 2008 as compared to MYR 30.23 million in first quarter of 2007 on the back of higher selling prices of steel products.

Its revenue surged over 50% YoY to MYR 671.3 million as compared to MYR 446.62 million due to the rising trend in international steel prices driven by strong worldwide demand.

Ann Joo Resources said that the surge in revenue from higher billets exports and local rolled products saw its pre tax doubling to MYR 125.86 million in the first quarter from MYR 63.46 million in the fourth quarter of FY07.

It said its stockist business would continue to remain focused on the trading of high-margin engineering and structural steel products through a strategic business alliance with international steel mills.

Ann Joo Resources said the company would continuously be on the lookout for strategic procurement and inventory management in anticipation of a volatile market with further price escalation of raw materials.

On the local front, the company said demand for construction steel was expected to remain steady due to strong economic fundamentals and construction activities.

It said the group will continuously on the lookout for opportunities for strategic procurement and inventory management in anticipation of a volatile market with further price escalation of raw materials.

Ann Joo Resources said that "Riding on the robust international steel market, the group's stockist business will continue to remain focused on the trading of high margin engineering and structural steel products through strategic business alliances with renowned international steel mills.”