KUALA LUMPUR (Nov 30): Electrical and electronics plastics contract manufacturer SKP Resources Bhd posted a 41.78% drop in net profit to RM27.07 million in its second quarter ended Sept 30, 2023 (2QFY2024), from RM46.49 million a year earlier.

The group attributed the lower earnings to sagging market demand, increased production costs, and higher overhead costs.

Earnings per share fell to 1.73 sen from 2.98 sen, according to the group’s bourse filing on Thursday.

Revenue for the quarter declined 29.4% to RM519.91 million, from RM736.46 million in 2QFY2023.

On a quarter-on-quarter basis, however, SKP’s net profit rose 25.42% from RM21.59 million in 1QFY2024, driven by the favourable product assortment and cost optimisation. Revenue increased 20.46% from RM431.61 million.

For the first six months of FY2024, the group’s net profit dropped 41.84% to RM48.66 million from RM83.66 million in the previous corresponding period, while revenue was down 26.33% to RM951.52 million from RM1.29 billion.

SKP said the group is mindful of significant credit concentration risk that may arise from major customers and continuously seeks to diversify its customer base.

The board is positive that the group “will sustain its resilience by maintaining a robust financial position at all time", the group added.

SKP’s shares finished down 3.5 sen or 4.46% at 75 sen on Thursday, valuing the group at RM1.16 billion. Year-to-date, the stock is down 86 sen or 53.42%.