CEO Morning Brief

Kronologi Asia Cautiously Optimistic of Second Half Earnings Despite Profit Drop of 40% in 2Q

Publish date: Thu, 22 Sep 2022, 08:37 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Sept 21): Kronologi Asia Bhd’s net profit for the second quarter ended July 31, 2022 fell by 39.2% to RM3.1 million on a 15% decline in revenue to RM63.13 million. Its performance was below expectations, the group acknowledged, but is optimistic of a better second half.

Earnings per share contracted to 0.44 sen from 0.82 sen in the same quarter last year, according to a filing with Bursa Malaysia on Wednesday.

The data management solutions company said its reduced profit was due to higher finance cost and depreciation of property, plant and equipment arising from the investment in infrastructure equipment for EDM As-A-Service.

On-going macroeconomic and geopolitical uncertainties impacted sentiments in the first half of 2022, which included continued stringent lockdowns experienced in China resulting in commercial and production delays, it said, as did soaring inflation and increasing interest rates.

“The group’s performance during the last quarter and throughout this fiscal period was weaker than our initial expectations.

“We however, remain cautiously optimistic that signs of economic reopening in China and continued healthy take up of our consumption (Pay per Use) and subscription (As-A-Service) models will power the Group’s performance for the second half of FY2023,” Kronologi said in the filing.

Kronologi’s shares ended 1% lower at 49 sen which translates into a market capitalisation of RM348.54 million.

Source: TheEdge - 22 Sep 2022

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