KUALA LUMPUR (Sept 25): Aluminium products maker LB Aluminium Bhd (KL:LBALUM) reported that its net profit for the first quarter doubled from a year ago, as revenue hits its highest in two decades, underpinned by stronger contributions from both its aluminium and property businesses.

The group made a net profit of RM8.86 million for the quarter ended July 31, 2024 (1QFY2025), up from RM4.32 million a year in 1QFY2024, pushing earnings per share up to 2.04 sen from 0.99 sen, its bourse filing showed.

Revenue jumped 35.9% to RM279.76 million from RM205.86 million, with topline from its aluminium business rising 23% to RM184.9 million from RM150.3 million amid higher sales volume and selling prices, while its property segment's revenue rose to RM94.9 million from RM55.6 million, boosted by increased sales and higher construction progress from its Satu Anggota Satu Rumah (SASaR) project and the PSV 1 Residences @ Platinum South Valley in Bandar Tasik Selatan, Kuala Lumpur.

No dividend was declared for the quarter under review.

Going ahead, the company expects the strengthening of the ringgit against the greenback will lower input costs for aluminium billets, which are purchased mainly in US dollars, though it noted that sales revenue may be impacted as its sales are primarily priced in the same currency.

Additionally, global aluminium prices remain volatile due to uncertainties in trade policy, it said. "We will continue to closely monitor our operational costs and selling prices to preserve our margins," the company said.

On the property front, LB Aluminium anticipates that both the SASaR and PSV 1 Residences will continue to contribute positively as sales and construction progress increase.

For the forthcoming quarter, it is cautiously optimistic about achieving profitability.

LB Aluminium's shares closed unchanged at 53.5 sen on Wednesday, giving the group a market capitalisation of RM232.65 million. The counter has risen 16.3% since the start of the year.