Malaysian timber company Lingui Developments Bhd saw its pre-tax profits rocket to M$52.7m for the quarter ending September 30, thanks to improved timber prices.
The firm, whose profits registered just M$1.9m during the preceding quarter, said the better than expected performance was due to steady demand from its traditional export market, coupled with the effects of a tropical log shortage.
Lingui exported 120,000m3 of plywood and 95,000m3 of logs during the quarter. Plywood prices averaged US$373 per m3 compared with US$284 in the previous quarter.
The company’s results were buoyed by sister company Samling DorFoHom Sdn Bhd’s M$12.5m sale of assets to Magna-Foremost Sdn Bhd.
Demand for plywood and logs has been fuelled by China and Japan, although analysts have questioned whether this can continue in the long term.
