P.A. Resources records highest ever quarterly gain

PETALING JAYA: P.A. Resources Bhd, Malaysia’s leading aluminium extruder company, recorded its highest ever quarterly revenue of RM150.7mil for the second quarter ended Dec 31, 2023 (2Q24).

It is an increase of 16.4% compared to 1Q24.

In a statement, the group said pre-tax profit stood at RM15.6mil, an increase of 31.4% compared to 1Q24.

It reported a net profit of RM11.4mil in 2Q24 after reflecting income tax expense of RM4.3mil.

The higher provision of income tax expense was mainly due to non-availability of deferred tax benefit for the current financial year due to utilisation of this deferred tax benefits in previous financial year.

“The extrusion and fabrication segment continues to be the main revenue contributor to the group.

“As for the cumulative six months period (1H24), P.A. Resources reported a 2.9% revenue growth to RM280.1mil as compared to 1H23.”

The pre-tax profit and net profit were RM27.6mil and RM20mil respectively.

On Nov 16, 2023, the company paid the single tier interim dividend of 0.5 sen per share.

In the reviewing quarter, the board of directors declared another single tier interim dividend of 0.5 sen per share amounting to approximately RM7.5mil in respect of financial year 2024 and payment will be made on March 25, 2024.

P.A. Resources group executive chairman Tan Sri Chan Kong Choy said: “We are pleased to announce a record set of financial results and achieve record quarterly revenue.

“Overall, the management views this very positively as our sales continue to grow.”

“At the pre-tax profit level, we are 31.4% higher as compared to 1QFY24 and net profit stands at RM11.4mil after reflecting income tax provision.”

Chan said the ongoing demand within the solar industry continues to be robust, driven by the global transition towards sustainable renewable energy.

“We were recently awarded the fourth extension from First Solar, with a contract value exceeding RM1bil, which is also the biggest contract to date.

“We are in the midst of implementing expansion initiatives to enhance our capacity and meet the growing demand.”

Chan said the group has proposed to acquire 18 acres of industrial lands within its existing factory vicinity to double its production capacity.

“We are confident that these expansion plans will not only contribute to a more sustainable environment but also will drive the company’s growth into upstream and downstream business.”