KUALA LUMPUR: Sern Kou Resources Bhd (SKR) net profit in the second quarter (2Q) ended December 31, 2019 jumped 45.7 per cent to RM6.2 million as compared to RM4.2 million in the previous quarter.
Revenue increased 53 per cent to RM 76 million million from RM50 million in the previous quarter, the company filing in Bursa Malaysia today showed.
The positive revenue is the result of increased in demand for both furniture manufacturing segment and tropical wood in the kiln drying, lamination and sawmill segment,” it said.
For the cumulative six-month period ended 31 December 2019, SKR’s revenue increased 44.0 per cent or RM47.4 million to RM155.2 million from RM107.8 million in first half 2019.
The increase was mainly attributed to the double-digit growth recorded by all key divisions in first half 2020, namely manufacturing (57.5 per cent), kiln-drying, lamination & sawmill (38.4 per cent), and processing & trading (35.4 per cent).
Managing director Chua Peng Sian said having started the financial year on a firm footing, the group has delivered another solid set of results amid the demanding business operating conditions.
“This is the best first-half performance in the history of our Group. In fact, our first-half has already surpassed full-year financial year 2019 net profit with all key segments experiencing robust growth,” said Sian.
Sian said the Group’s two sawmills (midstream) in Kelantan has continued to perform very well since attaining optimal capacity in end-FY19, which boosted our operational efficiency.
“Our sawmill operations remained SKR’s primary growth driver.
“As part of our plans to increase our sawmill capacity to cater for the growing demand, we are in the midst of expanding our existing sawmill plant in Kuala Krai, Kelantan.
"The expansion is progressing well and is on track for completion by the end of financial year 2020,” he said.
He also said the group is mindful of the current Covid-19 outbreak and are monitoring the situation closely.
“We are constantly keeping in touch with our suppliers and customers, and based on the feedback so far, things are under control and we do not foresee any major impact to our operations so far, be in from supply or demand side.
“Notwithstanding the outbreak, we remain focused on the execution of our plans and barring unforeseen circumstances, we have confidence that we can achieve another breakthrough in our financial performance this year,” he added.