PETALING JAYA: Poly Glass Fibre (M) Bhd’s net profit for the third quarter ended Nov 30, 2019 fell 39.81% to RM2.56 million from RM4.26 million a year ago, dragged down by its property development and glasswool manufacturing divisions.
Its revenue was 25.61% lower at RM16 million against RM21.51 million in the previous year’s corresponding quarter.
For the nine-month period, its net profit dropped 53.4% to RM3.37 million from RM7.23 million a year ago, while revenue was down 14.59% to RM46.55 million from RM54.50 million previously.
On its prospects, it said the fibre glasswool business is expected to be the major revenue contributor to the group in the immediate and near future. Internally, it will continue to focus on improving operation in order to achieve consistent output to lower production cost.
“Due to slow down in Australian property market, the company expects a slower sales to Australia operation in FY20. This will have a negative impact on our revenue as Australia is currently our largest export market. Nevertheless, the company continues to expand its export market in line with the improvement of production output. In order to achieve that, we will intensify our efforts to work with strategic partners in targeted countries to promote our brands.”
On the local front, the property market is expected to be dampened by the oversupply market condition. The company views the resume of mega projects like ECRL and public transport projects positively.
“However, we only expect to see the positive effect of continuation of projects in FY21. Having said that, the effect is not expected to be significant.”
Meanwhile, long-term demand for insulation is expected to increase consistently, albeit slowly, in tandem with the housing demand and increasing awareness of the importance insulation in energy efficiency.
