Malaysian steel maker & distributor Ann Joo Resources Bhd's net profit for the April-June 2022 quarter fell by 54% to MYR 34.09 million, from MYR 83.70 million in the same corresponding quarter of 2021, despite higher revenue. The lower net profit was primarily attributed to higher allowance for an inventory write down of MYR 84.32 million in Q2 of 2022, against MYR 2.36 million in Q2 of 2021, mainly to write down the cost of certain inventories to their estimated net realizable value. This was mitigated by the recognition of compensation for a trespassing claim of MYR 26.97 million from Tenaga Nasional Bhd. Ann Joo’s revenue for the quarter rose by 20% YoY to MYR 805.94 million due to higher prices for domestic and export sales, coupled with higher local sales tonnage. Ann Joo’s net profit for H1 of 2022 plunged by 57% YoY to MYR 67.015 million even though revenue increased by 18% to MYR 1.48 billion.Ann Joo said “Moving forward, the group said construction steel demand is likely to gain traction in the upcoming September-October construction peak period, in anticipation of China’s efforts to step up fiscal and monetary measures to boost the infrastructure and property sectors. Although the improvement in infrastructure spending is unlikely to fully offset the headwinds from the property sector, it may at least moderate the downward pace of steel demand in the near future, which, when combined with steel output cuts, will lend support to steel prices.”Ann Joo added “On the domestic front, steel demand is expected to remain lackluster, hindered by public funding constraints for infrastructure projects and mounting cost pressures caused by rising interest rates, inflation concerns and labour shortages. In addition, the uncertainty surrounding the 15th General Election poses challenges to political stability, as well as the path of economic growth and market recovery. Given the heightened level of market uncertainty, the group remains highly cautious and prudent in managing through this volatile and challenging period.”Ann Joo Resources Berhad, listed on the Main Market of Bursa Malaysia Securities Bhd since 26 November 1996, is an investment holding company. The Group is primarily engaged in the manufacturing and trading of steel and steel related products.We, at Ann Joo, are committed to provide steel products and services to our customers and our uncompromising standards and quality are among the industry’s highest. Ann Joo is highly regarded in the steel business as one of the country’s most prominent steel experts with its wealth of experience and unparalleled expertise that has assured Ann Joo’s position as the most trusted and reliable total business solution provider of steel products and services in Malaysia. Ann Joo Integrated Steel, incorporated in the year 2007, is primarily engaged in the manufacturing and trading of iron, steel and steel related products. The iron-making plant with an annual capacity of 500,000 tonnes is commissioned in year 2011 and consists of a 450 cubic meters Blast Furnace and Electric Arc Furnace. Ann Joo Steel Berhad was established in 161 as Olympus Digital Camera and is formerly known as Malayawata Steel. Ann Joo Steel Berhad is a leading manufacturer of long products ranging from billets, high yield deformed bars, mild steel round bars and wire rods. AJSB operates an upgraded 100 tonne Electric-Arc-Furnace with an annual rated capacity of 820,000 tonnes and three Rolling Mills with a total annual rated capacity of 650,000 tonnes.Anshin Steel Industries Sdn Bhd, commenced operation since 1988, operates a hot-rolled merchant bar rolling mill with an annual rated capacity of 50,000 tonnes. ASI is principally involved in the manufacturing of angle bars, flat bars, square bars and engineering-related round bars of various diameters and lengths.The Trading Division deals with a broadly diversified product portfolio comprising of a variety of flat and long steel for supply to a wide array of economic sectors such as oil and gas, petrochemical, palm oil and oleochemical, food and beverage, consumer electronics, automotive, engineering-fabrication intensive sectors, constructions and infrastructure.Ann Joo Metal Sdn BhdAnshin Steel Service Centre Sdn BhdAnshin Steel Processor Sdn BhdAnn Joo Metal (Singapore) Pte LtdSaga Makmur Industri Sdn BhdSaga Makmur Industri Sdn BhdAnjung Jasa Sdn Bhd
Malaysian steel maker & distributor Ann Joo Resources Bhd's net profit for the April-June 2022 quarter fell by 54% to MYR 34.09 million, from MYR 83.70 million in the same corresponding quarter of 2021, despite higher revenue. The lower net profit was primarily attributed to higher allowance for an inventory write down of MYR 84.32 million in Q2 of 2022, against MYR 2.36 million in Q2 of 2021, mainly to write down the cost of certain inventories to their estimated net realizable value. This was mitigated by the recognition of compensation for a trespassing claim of MYR 26.97 million from Tenaga Nasional Bhd. Ann Joo’s revenue for the quarter rose by 20% YoY to MYR 805.94 million due to higher prices for domestic and export sales, coupled with higher local sales tonnage. Ann Joo’s net profit for H1 of 2022 plunged by 57% YoY to MYR 67.015 million even though revenue increased by 18% to MYR 1.48 billion.Ann Joo said “Moving forward, the group said construction steel demand is likely to gain traction in the upcoming September-October construction peak period, in anticipation of China’s efforts to step up fiscal and monetary measures to boost the infrastructure and property sectors. Although the improvement in infrastructure spending is unlikely to fully offset the headwinds from the property sector, it may at least moderate the downward pace of steel demand in the near future, which, when combined with steel output cuts, will lend support to steel prices.”Ann Joo added “On the domestic front, steel demand is expected to remain lackluster, hindered by public funding constraints for infrastructure projects and mounting cost pressures caused by rising interest rates, inflation concerns and labour shortages. In addition, the uncertainty surrounding the 15th General Election poses challenges to political stability, as well as the path of economic growth and market recovery. Given the heightened level of market uncertainty, the group remains highly cautious and prudent in managing through this volatile and challenging period.”Ann Joo Resources Berhad, listed on the Main Market of Bursa Malaysia Securities Bhd since 26 November 1996, is an investment holding company. The Group is primarily engaged in the manufacturing and trading of steel and steel related products.We, at Ann Joo, are committed to provide steel products and services to our customers and our uncompromising standards and quality are among the industry’s highest. Ann Joo is highly regarded in the steel business as one of the country’s most prominent steel experts with its wealth of experience and unparalleled expertise that has assured Ann Joo’s position as the most trusted and reliable total business solution provider of steel products and services in Malaysia. Ann Joo Integrated Steel, incorporated in the year 2007, is primarily engaged in the manufacturing and trading of iron, steel and steel related products. The iron-making plant with an annual capacity of 500,000 tonnes is commissioned in year 2011 and consists of a 450 cubic meters Blast Furnace and Electric Arc Furnace. Ann Joo Steel Berhad was established in 161 as Olympus Digital Camera and is formerly known as Malayawata Steel. Ann Joo Steel Berhad is a leading manufacturer of long products ranging from billets, high yield deformed bars, mild steel round bars and wire rods. AJSB operates an upgraded 100 tonne Electric-Arc-Furnace with an annual rated capacity of 820,000 tonnes and three Rolling Mills with a total annual rated capacity of 650,000 tonnes.Anshin Steel Industries Sdn Bhd, commenced operation since 1988, operates a hot-rolled merchant bar rolling mill with an annual rated capacity of 50,000 tonnes. ASI is principally involved in the manufacturing of angle bars, flat bars, square bars and engineering-related round bars of various diameters and lengths.The Trading Division deals with a broadly diversified product portfolio comprising of a variety of flat and long steel for supply to a wide array of economic sectors such as oil and gas, petrochemical, palm oil and oleochemical, food and beverage, consumer electronics, automotive, engineering-fabrication intensive sectors, constructions and infrastructure.Ann Joo Metal Sdn BhdAnshin Steel Service Centre Sdn BhdAnshin Steel Processor Sdn BhdAnn Joo Metal (Singapore) Pte LtdSaga Makmur Industri Sdn BhdSaga Makmur Industri Sdn BhdAnjung Jasa Sdn Bhd
