KUALA LUMPUR (March 28): Roofing and building material products manufacturer Astino Bhd's (KL:ASTINO) net profit fell 41% to RM6.94 million in the second quarter ended Jan 31, 2025 (2QFY2025), from weak market demand that led it to cut product prices.

It posted a net profit of RM11.78 million in the corresponding quarter in financial year 2024.

Earnings per share dropped to 1.46 sen compared with 2.41 sen, according to the flat steel product manufacturer's bourse filing. No dividend was declared for the quarter under review.

Quarterly revenue also declined 9% to RM153.57 million from RM169.22 million, due to fewer business days as the Lunar New Year occurred during this period.

Meanwhile, for the cumulative six-month period, net profit declined by nearly 33% to RM13.64 million from RM20.35 million, due to lower demand which increased production costs and compressed profit margins.

Revenue declined by nearly 4% to RM321.78 million from RM334.86 million during the same period, primarily due to the downturn in steel prices.

Going forward, the group said it expects conditions to remain challenging due to ongoing macroeconomic uncertainties, volatile exchange rates, geopolitical conflicts, and the trade war between China and the US.

Despite this, the group will focus on prudent procurement and distribution strategies, cost optimisation and operational efficiency improvements, noting that efforts will be made to strengthen financial performance by maintaining healthy cash flow to ensure sustainable operations.

“Barring unforeseen circumstances and market uncertainties, the group will continue delivering high quality products to existing customers, actively secure orders from new customers, and monitor prevailing market conditions to adopt appropriate strategies for risk mitigation and sustainable growth," it added.  

At the closing bell on Friday, Astino's shares dropped by three sen or 5.4% to 52.5 sen, valuing the company at RM259 million. Year to date the stock is down 13.93%.