LY Corp posts 40% drop in Q2 profit

Tan Yong Chuan, chief executive and executive director of LY Corporation. PHOTO: BT FILE

SINGAPORE - Malaysian wooden bedroom furniture maker LY Corp has posted a net profit of RM6.5 million (S$2.2 million) for its fiscal second quarter, down 39.8 per cent from the same period a year earlier.

Revenue in the three months ended June 30 fell 21.5 per cent to RM 62.9 million on a drop in number of 40-ft containers sold. As well, the stronger Malaysian ringgit against the greenback resulted in the average selling price per container being reduced to RM49,000 from RM51,000. This squeezed second-quarter gross margin to 20.6 per cent, from 23.6 per cent in the same period last year.

Earnings per share was 1.32 sen, down from an illustrative 2.19 sen in the same period a year earlier.

Net asset value per share was 44 sen as at June 30, up from an illustrative 36 sen as at Dec 31 last year.

LY Corp was listed on the Catalist board in January this year. The net proceeds of S$13 million from the IPO have already been gradually invested as planned for the use of the acquisition of machineries and equipment as well as the construction of additional facilities, it said.

Chief executive Tan Yong Chuan said in the results filing on Tuesday: "The group remains optimistic of our growth prospects despite the recent strengthening of the ringgit against the US dollar due to our hedging policy and flexible selling price adjustment mechanism.

"We are expanding our sales and distribution network in China through a website service provider, Hangzhou Feilue Network Technology Co. In addition, while there is heightened certainties in world trade due to the trade dispute between the US and China, we expect the trade dispute to benefit our company."

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