KUALA LUMPUR: Asia Poly Holdings Bhd (APH) has registered a net profit of RM4.09 million in the third quarter (3Q) ended September 30, 2020 (FY20), compared to a net loss of RM2.13 million posted in the same quarter last year.
Quarterly revenue rose 49.05 per cent to RM30.12 million from RM20.21 million, largely due to the soaring demand of cast acrylic sheets in local and export markets.
Executive chairman Datuk Yeo Boon Leong said the rising demand for cast acrylic sheet is mainly attributed to the emergence of its new application as a protective barrier against Covid-19, commonly installed in indoor spaces such as shops, restaurants, offices and hospitals to reduce virus transmission and aid social distancing measures.
"This combined with the prolonged US-China trade war, is expected to continue driving the growth of orders and factory utilisation rate which results in greater efficiency and reduction in production cost.
"Looking ahead, we are confident that FY20 will be a strong growth year for the Group," he said in a statement.
The 3Q result has brought the Group's 9-month cumulative quarter revenue and net profit to RM57.29 million and RM4.70 million respectively, as compared to RM54.64 million and RM6.64 million net loss posted same period last year.
This puts APH on track to return to the green in FY20 after posting losses in the previous 2 years.
According to a filing with Bursa Malaysia, APH has seen a sharp spike in orders from new customers in USA and Europe.
Export sales reportedly grew 2,583 per cent to RM10.25 million compared to only RM0.38 million in the 3Q last year.
Given that both of APH's production lines are currently running at full capacity, the group plans to add a third production line by June 2021.
The third production line, which is expected to be ready by September 2021, will effectively increase APH's manufacturing capacity to 1,600 tonnes per month.
The group is currently running at a maximum capacity of 800 tonnes per month through two production lines out of its facility in Klang.
APH is the only listed Malaysian manufacturer of cast acrylic sheets.
Cast acrylic sheets are used widely in sanitary wares, signage and displays, architectural designs, interior design, automotive and transportation, and other applications.
Other applications include food, medical, industrial equipment, and sports.