KUALA LUMPUR (May 18): AYS Ventures Bhd has slipped into the red for the fourth financial quarter ended March 31 (4QFY16), with a net loss of RM477,000 or 0.13 sen per share.
The steel products trader had recorded a net profit of RM5.68 million or 1.49 sen a share for 4QFY15.
In a filing with Bursa Malaysia today, AYS said the poor 4QFY16 performance was a result of a drop in revenue, higher foreign exchange losses and a lower gain on fair value adjustments for investment properties.
Revenue dropped 3.98% to RM146.06 million, from RM152.12 million a year ago, due to lower sales volume and selling prices of steel products from the manufacturing division, resulting from weak global steel price and keen competition.
However, the drop in manufacturing sales was mitigated by a higher sales volume in the trading division, despite lower selling prices.
For the full financial year ended March 31 (FY16), AYS recorded a 17.3% increase in net profit to RM8.27 million or 2.17 sen a share, from RM7.05 million or 1.85 sen a share in FY15.
Revenue increased 4.9% to RM591.35 million, from RM563.8 million.
AYS said if current recovery in world steel prices continued, it may have a positive impact on its future revenue and profitability.
“Nevertheless, the group will continue to exercise caution in managing the businesses [and] focus on its cost management and resource optimization efforts,” it added.
At 3.58 pm, AYS shares were trading down 1 sen (3.7%) at 26 sen, for a market capitalisation of RM98.91 million.