A-Rank a premier aluminium manufacturer has recorded a revenue of RM563.4 million an RM144.6million increase or 35% higher than the previous financial year. The better performance was attributed mainly to both higher business volume and average selling prices.
According to filings, the export sales contributed about 38% of the total revenue whilst the balance is from the local market which is in line with the Group’s strategy in maintaining its leading market position in Malaysia.
The Aluminium Segment was the sole contributor to the Group’s revenue for FYE 2021 as the Property Segment
was still in the early stage of project development during the financial year. The Group reported an increase in profit before tax of 26.9% for FYE 2021 as compared to RM9.6 million in the previous financial year. The profit before tax has increased due mainly to higher business volume as well as improved margins.
However, the Property Segment reported a loss before tax of RM2.9 million mainly due to the term loan interest
of RM2.2 million that was expensed off following the adoption of IFRIC Agenda Decision – Over time transfer of
constructed goods. The Group reported an increase of profit after tax by 13.0% from RM7.3 million to RM8.3 million in the current financial year under review in line with the increase of profit before tax.
Despite the volatility of raw material costs and the exchange rate of MYR against the USD, the Group was able to
remain profitable and recorded a positive Earnings Before Interest, Tax, Depreciation and Amortisation of RM20.8 million for FYE 2021.
The Group is principally involved in the manufacturing and marketing of aluminium billets catering to aluminium
extruders. It continues to experience competition from other local competitors but believes that its ability to compete depends upon many factors including market acceptance of the product quality, competitive pricing and reliable delivery schedule. In addition, local manufacturers of aluminium billets also compete directly with importers as no tariff is levied on imported aluminium billets in Malaysia.
However, the Group believes it has an edge over its competitors in that it is able to provide flexibility in deliveries
to its customers as well as its ability to produce high quality aluminium billets which in turn, further improve the
efficiency and cost structure of aluminium extruders.
The Group’s primarily raw materials is aluminium ingots and its price is dependent upon global demand and supply
situation and is a commodity traded on the London Metal Exchange (“LME”). A shortage of supply may increase the
pricing of these raw materials. With regards to the prices, the Group expects to be able to pass on the costs of any increase to its customers, as the orders from customers are priced back-to-back with that of its suppliers thus reducing the risk of any price volatilities
Moving forward, while initial concerns are beginning to dissipate, the outlook would still depend on evolving Covid-19
developments and the pace of economic recovery. At this juncture, there are limited risks of a broad-based and persistent decline in prices, with price pressures on an upward trend since the gradual reopening of the economy.
