KUALA LUMPUR (Dec 28): Chemical trading outfit Analabs Resources Bhd's net profit doubled to RM13.04 million for the second quarter ended Oct 31, 2023 (2QFY2024), from RM5.51 million a year ago, led by improved manufacturing business and better cost control, along with increased dividends from quoted share investments.

Earnings per share rose to 11.97 sen, from 5.06 sen for 2QFY2023, according to Analabs in a local bourse filing.

Quarterly revenue increased by 25.5% to RM44.87 million, from RM35.75 million for the previous corresponding quarter, driven by a surge in sales of melamine-faced chipboards.

The investment holding and property letting segment's revenue also jumped by 70.1% to RM7.8 million, compared with RM4.6 million a year ago, primarily due to higher dividends received from quoted share investments.

In line with the robust performance, the group declared an interim dividend of 2.1 sen per share, higher than two sen for the same period last year, with the payment date to be announced later.

For the first half ended Oct 31, 2023 (1HFY2024), the group's net profit also doubled to RM16.95 million, compared with RM6.89 million for 1HFY2023, while revenue increased by 32.4% to RM83.17 million, from RM62.82 million for the same period a year ago.

Despite anticipating a challenging business outlook due to geopolitical developments, Analabs said it had implemented relevant hedging strategies to control cost structures, and identify new opportunities to mitigate these effects.

"We foresee that consistent dividend income from the investment holding segment can be sustainable," it added.

Shares in Analabs settled unchanged at RM1.53 on Thursday, resulting in a market capitalisation of RM183.67 million for the company.