KUALA LUMPUR: Chemical distributor Luxchem Corp Bhd saw its net profit double (117.76%) to RM13 million or 4.95 sen per share in the third quarter ended September 30, 2015 (3QFY15), from RM5.97 million or 4.59 sen per share a year ago.
The company, in its Bursa Malaysia quarterly report, attributed the jump in net profit to increased revenue from the trading and manufacturing segments, as well as realised foreign exchange (forex) gain.
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Its revenue came in 6.1% higher at RM169.17 million in 3QFY15, from RM159.44 million in 3QFY14, due to higher contributions from both its trading and manufacturing segments.
Luxchem is principally engaged in the marketing and distribution of industrial chemicals and materials. The company also manufactures unsaturated polyester resins.
As for its cumulative nine months (9MFY15), net profit increased 55.46% to RM24.36 million, from RM15.67 million in the previous corresponding period – primarily because of the same reason, for its better quarterly earnings.
Its 9MFY15 revenue was up 10.15% to RM502.74 million, from RM456.4 million in 9MFY14, again due to improvements from both its trading and manufacturing segments.
The company recorded a forex gain of RM3.06 million in 3QFY15 and RM5.64 million for 9MFY15.
On prospects, Luxchem said fluctuations in exchange rates and raw material prices will continue to be a challenge to the group, but it remains positive over its prospects.
Luxchem shares closed unchanged at RM1.58 today, with a market capitalisation of RM418.27 million. – The Edge Markets, October 30, 2015.
