Malaysian Chin Well Warns of Lower FY17 Earnings

Penang-based Chin Well Holdings Bhd, a carbon fastener and wire rod producer, has warned that it is expecting a lower pre-tax profit for the financial year ended June 30, 2017 (FY17). The first of four reasons it listed was the global increase in the price of raw materials, particularly wire rod. The imposition of safeguard duty by the Malaysian government on wire rod imported from China and shortages of direct labour in the manufacturing industries were two other reasons. Lastly, it said its cumulative profit before tax in the first nine months of FY17 came in 10.2% lower at RM51.03 million, compared with the RM56.81 million it recorded in the corresponding period of FY16. Its cumulative nine-month net profit was 12% lower at RM41.74 million compared with RM47.68 million last year. However, despite the expected drop in profits, the company (Chin Well) assures it is not likely to go into the red