POLY Glass Fiber (M) Bhd’s net profit fell by more than 61% to RM2.56 mil for the third quarter ended Nov 30, 2019 from RM4.26 mil a year ago on the back of lower revenue of RM16 mil versus RM21.51 mil.
For the nine-month period, the company registered a net profit of RM3.37 mil compared with RM7.23 mil a year earlier while revenue declined to RM46.55 mil from RM54.5 mil.
For the quarter just ended, EPS fell to 1.6 sen from 2.66 sen previously.
In a filing with Bursa Malaysia, the company said revenue for its glasswool and related products segment decreased by 25.1% year-on-year to RM15.57 mil while pre-tax profit fell to RM2.92 mil from RM4.52 mil.
For its property segment, pre-tax profit fell to RM54,000 from RM95,000 on the back of 45.54% yoy lower revenue of RM340,000.
The company expects its fibre glasswool business to be the major revenue contributor in the immediate and near future.
It will continue to focus on improving operations in order to achieve consistent output to lower production cost.
For its property segment, the company expects slower sales in Australia for FY20 due to a slowdown in the Australian property market. This will have a negative impact on its revenue as Australia is currently its largest export market.
On the local front, the property market is expected to be dampened by the oversupply situation. The company views the resumption of mega projects such as the East Coast Rail Link (ECRL) and public transport projects to have a positive impact on the economy.
However, it only expects to see the positive effects of the mega projects in FY21.
“Long-term demand for insulation is expected to increase consistently, albeit slowly, in tandem with housing demand and increasing awareness of the importance of insulation in energy efficiency,” it said.
