News / Press Release

D&O's 3Q net profit jumps 26% amid strong automotive LED demand

Date: 24 November 2021 Source: The Edge

KUALA LUMPUR (Nov 24): D&O Green Technologies Bhd's net profit increased 26% to RM18.6 million for the third quarter ended Sept 30, 2021 (3QFY21), from RM14.73 million a year earlier, on strong demand for automotive LED.

Revenue increased 10% to RM174.57 million from RM158.86 million, the group's bourse filing showed.

The group said that while its factory was shut down for 24 days, from July 8 to July 18 and Aug 9 to Aug 23, to curb the spread of Covid-19, it still managed to record revenue growth, supported by strong growth in global automotive LED demand and progressive commercialisation of new business wins.

Its performance was also supported by better cost management and production efficiency improvements, which were partly offset by higher administrative expenses incurred in the implementation of Covid-19 preventive measures.

D&O said it also benefitted from the reversal of the over provision of 2020 income tax expense during the quarter.

For the cumulative three quarters ended Sept 30, 2021, D&O's net profit surged 272% to RM71.89 million, from RM19.33 million a year ago, while revenue jumped 61% to RM588.87 million from RM366.21 million.

Looking ahead, the group expects a strong sequential rebound in sales revenue and profit in the last quarter of FY21, adding that its 90% subsidiary Dominant Opto Technologies Sdn Bhd's expanded capacity has been fully booked for the quarter.

"All employees have completed two doses of vaccination under the MITI PIKAS programme. On Nov 11, 2021, Dominant kicked off the booster vaccination programme (third dose).

"The completion of the vaccination programme, coupled with robust internal Covid-19 preventive measures in place, is expected to substantially reduce the risk of further production disruption," it said.

D&O's share price fell six sen or 1.01% to RM5.87, giving the group a market capitalisation of RM7 billion.