Leon Fuat posts 470 pct rise in quarterly PAT

Generally, our business was not severely affected by the movement restrictions in 9M21 while higher overall revenue together with higher gross profit margins supported our financial performance.

Calvin Ooi Shang How

KUCHING: Leon Fuat Bhd (Leon Fuat), a manufacturer and trader of steel products, specialising in rolled long and flat products, has announce that the group recorded a 470.4 per cent gain in profit after tax (PAT) to RM38.66 million for the third quarter ended September 30, 2021 (3QFY21) compared with RM6.78 million in the corresponding quarter of the preceding year (3QFY20).

For the quarter under review, the company registered a 44.1 per cent increase in revenue to RM236.11 million compared with RM163.82 million in 3QFY20 while profit before tax (PBT) recorded a 447 per cent gain to RM49.14 million compared with RM8.98 million in 3QFY20.

On a segmental basis, revenue from trading of steel products increased by 65.7 per cent to RM94.81 million while revenue from the processing of steel products increased by 32.6 per cent to RM141.22 million.

The trading segment’s contribution to revenue stood at 40.2 per cent in 3QFY21 compared with 34.9 per cent in 3QFY20 while the processing segment’s contribution to revenue stood at 59.8 per cent compared with 65 per cent in 3QFY20.

For the nine months ended September 30, 2021 (9M21), PAT grew 918.5 per cent to RM106.89 million compared with RM10.5 million registered in the corresponding period of the preceding financial year (9M20).

PBT increased by 815.2 per cent to RM134.24 million compared with RM14.67 million recorded in 9M20 while revenue rose 61.9 per cent to RM632.37 million compared with RM390.61 million recorded in 9M20.

“Generally, our business was not severely affected by the movement restrictions in 9M21 while higher overall revenue together with higher gross profit margins supported our financial performance,” Leon Fuat executive director Calvin Ooi Shang How said.

“However, we note that while there is potential rebound in domestic economic activities that will lead to recovery in the coming quarter, we will manage the continuing risks from supply disruptions persistently amid a resurgence in Covid-19 infections in certain economies.

“We are taking proactive measures to ensure business continuity and sustainability given the volatile business landscape.

“These measures include keeping vigilant on steel price movements and related foreign currencies, taking proactive measures including negotiating forward contracts, where necessary, as well as prudent inventory management while continuously enhancing the operating capabilities and efficiencies to meet customers’ requirements and keeping our operating costs at a manageable level.”