KUALA LUMPUR (May 13): PA Resources Bhd's (KL:PA) net profit for the third financial quarter ended March 31, 2024 (3QFY2024) leaped by more than 51 times year-on-year, mostly contributed by its main extrusion and fabrication segment.

The aluminium extruder reported a net profit of RM12.43 million, up from RM239,000 for the previous year's corresponding quarter.  

The group's extrusion and fabrication segment saw a surge of revenue by RM64.7 million, predominantly due to higher orders for both exports and local sales, alongside a rise in inter-company sales.

Extrusion is the process of shaping aluminium by forcing it to flow through a shaped opening in a die.

These pushed the group's overall revenue up 62.4% to RM137.77 million from RM84.81 million, it said in a bourse filing on Monday.

For the cumulative nine months ended March 31, 2024 (9MFY2024), PA Resources posted a 15.8% jump in net profit to RM32.44 million from RM28.03 million for 9MFY2023, as revenue rose 17% to RM417.85 million from RM356.99 million previously.

Looking ahead, PA Resources said it is aiming to double its production capacity, with the construction of a new factory, following the acquisition of two plots of industrial land worth RM21 million in February. 

It had previously said it was aiming for an increase to about 7,000 tonnes a month from its existing production capacity of 3,200 tonnes a month, and that its existing factory was operating at near maximum capacity.

"The new factory will enable the doubling of production capacity, as well as strategically capitalising the upstream and downstream business," it said.  

"Barring unforeseen circumstances, the board is cautiously optimistic about the group’s performance for FY2024," PA Resources added.

Shares in PA Resources dropped half a sen or 1.47% to close at 33.5 sen on Monday, giving the stock a market capitalisation of RM500.97 million. Year to date, the counter has gained seven sen or 24.07%.