Perstima share price up on stellar earnings

PETALING JAYA: Tinplate manufacturer Perusahaan Sadur Timah Malaysia (Perstima) Bhd’s share price spiked 7.4% to a year-to-date high of RM5.20 as of yesterday’s close, on the back of stellar first-quarter earnings.

As of mid-day, the stock rose 6.8% to RM5.17, and total shares traded for the day amounted to 187,500 shares.

Perstima registered a three-fold increase in net profit for the quarter ended June 30 to RM12.14mil compared with the same period last year.

According to a filing with Bursa Malaysia, this was due to a higher profit margin despite a lower sales volume during the quarter.

Revenue increased 0.6% to RM238.83mil as compared to the previous corresponding quarter due to higher selling prices.

“The board of directors expects the group’s operating environment to remain challenging and competitive due to a higher presence of imports from overseas, in addition to the volatility of the ringgit against the US dollar.

“Although this factor will affect the growth and profitability of the group, the management will continue with its production efficiency, cost-saving measures and marketing efforts for the group to be profitable,” said Perstima.

Revenue for Perstima’s Malaysian operations decreased by 6.8% to RM11.7mil compared with the corresponding quarter last year due to a lower sales volume, while its Vietnam subsidiary saw a 19.7% increase in revenue to RM13.4mil.