KUALA LUMPUR (July 31): Perusahaan Sadur Timah Malaysia Bhd (Perstima) has reported a 76% drop in net profit for its first quarter ended June 30, 2017 (1QFY18) to RM2.84 million, from RM11.79 million a year earlier, due to a lower profit margin, despite higher sales volume.
 
The group, which manufactures and exports high-quality tinplate, said it “was not able to pass through the production cost hike to customers, in order to maintain price competitiveness.”
 
Revenue for the quarter rose 34.7% to RM237.5 million, from RM176.29 million a year ago (1QFY17), due partly to higher selling price amid high sales volume.
 
In a filing with Bursa Malaysia, Perstima said it expects the operating environment to remain challenging and competitive, due to greater presence of imports from overseas, in addition to volatility of the Malaysian ringgit against the U.S. dollar.
 
“Although these factors will affect the growth and profitability of the group, the management will continue with its cost saving measures, sales and marketing efforts, in order to achieve a reasonable profit level,” it added.
 
Established in August 1979, Perstima currently boasts a total production capacity of 200,000 tonnes per annum, with factories in Johor and Vietnam.
 
Perstima is controlled by Versalite Sdn Bhd, which is linked to its executive directors Hiroshi Kume and Rin Nan Yoong.
 
Perstima’s share price closed four sen or 0.5% higher at RM8.10 today, for a market capitalisation of RM804.37 million.