P.A. Resources Bhd, Malaysia's leading aluminium extruder company, is set to expand its capacity by 50% through a new plant funded through borrowings and internal financing as the group's quarterly revenue for the first quarter of FY2024/251 grew 8.8% quarter-on-quarter (QoQ) and 23.4% year-on-year (YoY) to RM159.7 million driven by increase in productivity which in turn boosted sales, according to a press statement circulated by the company.
"The global aluminium extrusion market is expected to double by 2034, driven by increasing demand in key sectors such as construction, automotive, aerospace, agriculture and renewable energy. P.A. Resources is well-positioned to capitalise on these growth opportunities. We are on track to expand capacity by up to 50% through our new plant, with funding primarily sourced from borrowings and internally generated funds. Additionally, the recent granting of a zero-dumping rate status on our aluminium extrusion products exported to the USA will further enhance our pricing competitiveness," said Group Managing Director (MD) Tan Sri Lau Kuan Kam.
During the quarter under review, the group posted RM4.6 million in profit after tax (PAT), which is lower than the RM8.7 million recorded in the previous quarter, yet higher than the RM4.1 million recorded in the corresponding quarter last year. The decline was mainly due to foreign exchange (forex) rate translation/conversion losses amounting to RM18.1 million in the first quarter ended 30 Septmber 2025. This loss arising from book value rate at RM4.729 per dollar against the prevailing forex conversion rate at RM4.119 per dollar.
Commenting on the results, the MD noted, "We take proactive measures to manage currency volatility amongst others by entering into forward contracts on our revenue and also keeping in dollar cash for purchase of materials. All these measures have mitigated the forex losses."
FY2024/25: Financial year ending 30 June 2025 ︎
