Leon Fuat Berhad Posts 35.8% Increase in Q2 Revenue to RM250.93 Million ACN Newswire

Leon Fuat Berhad Posts 35.8% Increase in Q2 Revenue to RM250.93 Million

August 29, 2022
SHAH ALAM, Malaysia, Aug 29, 2022 - (ACN Newswire via SEAPRWire.com) - Leon Fuat Berhad, a manufacturer and trader of steel products specialising in rolled long and flat steel, today reported a 35.8% increase in revenue to RM250.93 million for the second quarter ended 30 June 2022 (Q2FY2022) compared with RM184.78 million recorded in the corresponding quarter of the preceding financial year (Q2FY2021).Calvin Ooi Shang How, Executive Director of Leon FuatThe Group recorded profit before tax (PBT) of RM18.04 million for Q2FY2022, a 57.6% decrease from RM42.57 million registered in Q2FY2021 while recording profit after tax (PAT) of RM14.02 million, which is a 56.3% decrease from RM32.12 million reported in the corresponding quarter of the preceding financial year.For the quarter under review, the trading segment contributed 38.4% to revenue while the processing segment contributed 61.5%.For the six months ended 30 June 2022 (1H 2022), Leon Fuat registered a 32.2% increase in revenue to RM523.95 million compared with RM396.26 million recorded in the six months ended 30 June 2021 (1H 2021). For the period under review, the Company reported PBT of RM49.85 million, a 41.4% decrease from RM85.10 million recorded in 1H 2021 while for 1H 2022, PAT decreased 44.4% to RM37.91 million compared with RM68.23 million recorded in 1H 2021.Calvin Ooi Shang How, Executive Director of Leon Fuat said, "We saw higher overall revenue on the increased contributions from the trading and processing of steel products, but a combination of lower overall gross profit margin and inventories written down of RM13.88 million in the current quarter as certain inventories were measured at its estimated net realisable value weighed on PBT.""The outlook for the global economy remains volatile on a combination of China's slowdown, the Russia-Ukraine war and tighter monetary policy in response to inflation. While the domestic economy has so far weathered the challenges on a combination of resilient exports and private consumption, uncertainties remain because of the potential risks from supply-chain disruptions and rising commodity prices leading to inflationary pressure.""We are more neutral as to the prospects for the remaining quarters of the year given these challenges especially with the softening of steel prices and the weaker ringgit. We have increased monitoring of steel prices and related currencies and continue to take proactive measures including negotiating forward contracts, where necessary, as well as prudent inventory management, to reduce any negative impact which may arise. The Group will strive to keep operating costs at manageable levels while enhancing operating capabilities and efficiencies to meet customer requirements and to ensure timely satisfaction of customer orders."Leon Fuat Berhad: [BURSA: LEFU] , https://www.leonfuat.com.my/ Copyright 2022 ACN Newswire. All rights reserved. (via SEAPRWire)
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Leon Fuat Berhad Shareholders Vote to Pass All Resolutions at AGM ACN Newswire

Leon Fuat Berhad Shareholders Vote to Pass All Resolutions at AGM

June 28, 2022
SHAH ALAM, Malaysia, Jun 28, 2022 - (ACN Newswire via SEAPRWire.com) - Leon Fuat Berhad, a manufacturer and trader of steel products, specialising in rolled long and flat steel products, is pleased to announce that shareholders have passed all resolutions at the Group's 15th AGM held today.Mr. Calvin Ooi Shang How, Executive Director of Leon FuatShareholders passed a resolution approving a final single tier dividend of 2.0 sen per share for the financial year ended 31 December 2021 (FY2021).Shareholders also voted to re-elect Dato' Sri Ooi Bin Keong, Mr. Tan Did Heng, Mr. Tan Sack Sen and Dato Lim Cheng Poh as directors as well as to retain Mr. Chan Kee Loin as an independent director. Also retained as independent directors were Did Heng and Sack Sen.Among the other resolutions up for voting, shareholders reappointed Baker Tilly Monteiro Heng PLT as the Group's auditors and authorised the directors to fix the remuneration of the auditors.Mr. Calvin Ooi Shang How, Executive Director of Leon Fuat said, "We are happy to meet our shareholders again in a physical setting for the 15th AGM after having held the previous AGM virtually. We would like to thank shareholders for their trust and confidence in us as we navigated a challenging FY2021. Our financial performance for the first quarter ended 31 March 2022 was satisfactory despite the decrease in overall gross profit margin.""We are cautiously optimistic of achieving profitable results for the remaining quarters of FY2022 but would like to point out that the outlook has dimmed considerably with the World Bank having cut global economic growth outlook to 2.9% for this year from the 4.1% growth outlook it had forecast in January 2022. To mitigate risks, the Group will continue to monitor steel prices closely as well as related foreign currencies. We will also take proactive measures such as anticipating price and currency volatility through negotiating forward contracts as well as prudent inventory management."Leon Fuat Berhad: [BURSA: LEFU] , https://www.leonfuat.com.my/ Copyright 2022 ACN Newswire. All rights reserved. (via SEAPRWire)
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