KUALA LUMPUR (Nov 22): Melaka-based D&O Green Technologies Bhd’s (KL:D&O) net profit for the third quarter ended Sept 30, 2024 (3QFY2024) was flat at RM18.25 million from a year earlier despite thinner gross margin.

Its gross margin was recorded at 20% in 3QFY2024, compared to 24% in 3QFY2023, impacted by changes in sales mix and foreign exchange effects related to the use of inventory purchase before 3QFY2024, said the automotive light-emitting diode (LED) manufacturer in a bourse filing.

Notably, D&O Green booked foreign exchange gains of RM14.77 million in the quarter under review, compared with foreign exchange losses of RM3.14 million a year before.

Earnings per share was unchanged at 1.47 sen in 3QFY2024. Quarterly revenue was also flat at RM273.25 million, from RM271.95 million a year before.

The group declared a first interim dividend of 0.3 sen per share, payable on Dec 30, 2024.  

For the nine-month ended Sept 30, 2024 (3QFY2024), its net profit jumped 88% to RM37.29 million, from RM19.82 million, while cumulative revenue grew by 15% to RM812.62 million from RM706.64 million in the previous corresponding period.  

On its prospects, D&O said its management remains optimistic of achieving positive revenue growth in the current financial year (FY2024).

D&O believes the long-term outlook for LED in the automotive sector remains strong with demand for LED expected to increase. Hence, the group said it is in a position to capitalise on this trend.

Shares in D&O Green fell two sen to RM2.15 on Friday, valuing the company at RM2.67 billion.