PETALING JAYA: Leon Fuat Bhd
saw its net profit jump about 12-fold to RM32mil for the second quarter ended June 30, 2021 (Q2’FY21), from RM2.7mil in the corresponding quarter last year.
In its exchange filing, the steel products trader said the strong earnings growth was mainly attributable to increase in revenue and higher gross profit margin.
During the quarter in review, Leon Fuat’s revenue rose 73% to RM185mil from RM107mil in Q2’FY20. It said the increase in revenue was mainly attributable to increase in revenue for trading and processing of steel products.
Its earnings per share (EPS) grew to 9.76 sen from 0.86 sen previously.
For the cumulative period, Leon Fuat’s net profit increased 18-fold to RM68mil from RM3.7mil in the six months to June 2020 (H1’FY20), resulting in an EPS of 21.35 sen, compared with 1.19 sen previously.
Its cumulative revenue increased 74.7% to RM396mil for H1’FY21 from RM227mil in H1’FY20.
Leon Fuat executive director Calvin Ooi Shang How said the group remained optimistic for the rest of the year despite the uncertainties affecting the outlook.
“The surge in steel prices globally since last year is supported by economic recovery and the gradual reopening of economies around the world. The expected rebound will unleash pent-up industrial demand which will hopefully maintain upward momentum for the steel sector,” he said.
