Fat margins boost Leon Fuat's earnings in 2021

SHAH ALAM (Feb 25): It's another profitable quarter for Leon Fuat Bhd (Bursa : 5232), with wider gross profit margins from trading and processing of steel products.

Net profit grew approximately 62% for Q4 to RM30 million while revenue increased almost 28% to RM254 million.

For the entire year, net profit surged 378% to RM136 million compared to the year before on the back of 50% increase in revenue to RM886 million.

Photo: Calvin Ooi

Calvin Ooi, Executive Director of Leon Fuat said, “The Group’s financial performance for the quarter under review was supported by higher revenue and better gross profit margin from the rise in average selling prices in both the trading and processing of steel products. For the financial year as a whole, revenue was also supported by higher overall average selling prices that also resulting in better overall gross profit margin.”

“We are maintaining our cautious outlook for 2022 on downside risks arising from decelerating economic growth amid continued COVID-19 flareups across the world, diminishing policy support and lingering supply bottlenecks. While the Malaysian economy is expected to grow by 5.5% to 6.5% this year on continued external demand and private sector expenditure, we note concerns over new virus variants, inflation and financial stress that could weigh on economic recovery too.”

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