HG Metal Manufacturing is expecting to report a net profit for the 1HFY2024 ended June 30, reversing from a net loss in the same period the year before.
The expected improvement in the group’s bottom line is attributed to the absence of a one-off loss for its discontinued operations in the Myanmar subsidiary. The group divested its investment in the same subsidiary in February this year.
The better net profit is also due to the higher sales volume and the depletion of high-cost inventory that was in the group’s books in FY2023, which led to better gross profit margins.
The group will release its results on or before Aug 14.
Shares in HG Metal Manufacturing closed 0.5 cents lower or 1.59% down at 31 cents on July 24.
