KUALA LUMPUR (Feb 27): D&O Green Technologies Bhd’s (KL:D&O) net profit shrank 90.9% year-on-year (y-o-y) to RM2.21 million for the fourth quarter ended Dec 31, 2024 (4QFY2024), from RM24.32 million a year earlier. 

The weak earnings performance, according to the company’s filing, was due mainly to lower car production-impacted demand for its automotive LED products.

Gross profit margin narrowed to 20% in 4QFY2024, from 26.2% a year ago, due to lower plant utilisation following the capacity expansion in advance catering for new products, the group's bourse filing showed. 

The latest quarterly earnings is the lowest in over a year, when it posted RM716,000 in 2QFY2023.

Earnings per share fell to 0.09 sen in 4QFY2024, from 1.96 sen in 4QFY2023.

Revenue dropped 15.5% y-o-y to RM261.89 million from RM309.97 million in 4QFY2023, mainly due to weak customer orders, resulting from lower car production by car manufacturers.

No dividend was declared for the 4QFY2204.

For FY2024, D&O net profit fell 10.5% to RM39.5 million, from RM44.14 million previously.

This is despite the group posting a fresh all-time high full-year revenue of RM1.07 billion, up 5.7% from RM1.02 billion previously,

Looking ahead, the company is implementing a comprehensive cost optimisation plan in 2025 to mitigate the impact of higher minimum wages.

D&O is optimistic about revenue growth, driven by the growth of the LED business and additional sales contributions from its unit Dominant Electronics.

D&O’s shares closed unchanged at RM1.40, marking its lowest over four years since November 2020. At RM1.40, the stock is valued at RM1.74 billion. Over the past one year, the stock has dropped 60%.