KUALA LUMPUR: Lingui Developments Bhd net profit for the third quarter ended March 31, 2011 surged to RM69.11 million from RM24.13 million a year earlier on the back of improving prices for timber products.
Its revenue for the quarter rose to RM377.39 million from RM360.08 million in 2010. Earnings per share was 10.48 sen while net assets per share was RM2.40.
For the nine months ended March 31, Lingui's net profit rose to RM163.99 million from RM89.25 million on the back revenue RM1.17 billion.
Reviewing its performance, Lingui said on Monday, May 16 that prices for its timber products had been on the rising trend for the past nine months due to improving price trends from Japan and firm and stable demand from China and India.
However, it said that the strengthening of the ringgit against the US dollar had impacted its results as its export products were predominantly in US denomination.
On its prospects, Lingui said it expected to benefit from an increase in plywood export volume and prices when reCONSTRUCTION [] activities in Japan after the earthquake and tsunami commence.
Restocking activities in preparation for this had already kickstarted an upward movement in prices, which was likely to stabilise in the mid-term as supplies increase, it said.
The company said prices for hardwood logs had risen to higher levels since the last financial quarter as log shortage still existed and production costs were on the rise with increase in fuel prices.
'On the longer term, it is expected to stabilise but at higher price levels in view of cost increases.
'Moreover, with the housing demand and infrastructure development in China remaining robust, hardwood logs prices are expected to remain strong,' it said.
Lingui said the continued strengthening of the ringgit against the US dollar has had an adverse effect upon profitability which would be exacerbated by further strengthening unless the selling prices which are in US dollars increase in tandem.
'Steps have been taken to export in other currencies to spread the foreign exchange risks.
'The Group strives to work on improving its operational efficiency, keeping a tight rein over cost, to ensure it remains competitive,' it said.
Its revenue for the quarter rose to RM377.39 million from RM360.08 million in 2010. Earnings per share was 10.48 sen while net assets per share was RM2.40.
For the nine months ended March 31, Lingui's net profit rose to RM163.99 million from RM89.25 million on the back revenue RM1.17 billion.
Reviewing its performance, Lingui said on Monday, May 16 that prices for its timber products had been on the rising trend for the past nine months due to improving price trends from Japan and firm and stable demand from China and India.
However, it said that the strengthening of the ringgit against the US dollar had impacted its results as its export products were predominantly in US denomination.
On its prospects, Lingui said it expected to benefit from an increase in plywood export volume and prices when reCONSTRUCTION [] activities in Japan after the earthquake and tsunami commence.
Restocking activities in preparation for this had already kickstarted an upward movement in prices, which was likely to stabilise in the mid-term as supplies increase, it said.
The company said prices for hardwood logs had risen to higher levels since the last financial quarter as log shortage still existed and production costs were on the rise with increase in fuel prices.
'On the longer term, it is expected to stabilise but at higher price levels in view of cost increases.
'Moreover, with the housing demand and infrastructure development in China remaining robust, hardwood logs prices are expected to remain strong,' it said.
Lingui said the continued strengthening of the ringgit against the US dollar has had an adverse effect upon profitability which would be exacerbated by further strengthening unless the selling prices which are in US dollars increase in tandem.
'Steps have been taken to export in other currencies to spread the foreign exchange risks.
'The Group strives to work on improving its operational efficiency, keeping a tight rein over cost, to ensure it remains competitive,' it said.
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