Diamond Roofing Tiles posts 35% profit increase in first half

Diamond Roofing Tiles Plc reported 35.4% growth in its first-half profits thanks to strong demand locally and abroad for its fibre cement tiles and siding board products.

The company reported first-half profits of 228.85 million baht, up from 168.99 million in the same period last year. Second-quarter profits rose to 120.12 million baht from 91.12 million the same period last year.

First-half revenues increased by 8.86% year-on-year to 1.36 billion baht, with second-quarter revenues up 7.6% to 703 million. The company said growth was driven by increases in export sales and gains in interest income.

Asanee Chantong, the DRT managing director, said the company projected full-year growth of 5% to 10% this year, and would continue to focus on expanding its overseas market share and customer base.

''We plan to launch premium products, both new models of fibre cement tiles and siding boards, to serve high-end clients. We'll also consider procuring new machinery to help increase our production capacity,'' he said.

Mr Asanee said the company planned no changes to its 600-strong dealer network this year.

''In the first half of the year, DRT posted gradual growth, with our sales revenue rising steadily despite political and economic uncertainties. We were fortunate in being able to maintain our direct-sales channels through our dealers,'' he said.

He said DRT directors would meet later this month to debate paying an interim dividend. The company's policy was to payout at least 50% in net profits. DRT had a dividend yield of 5.6% at the end of last year and 7.43% as of July 10. The company paid an interim dividend of 0.50 baht per share and a total dividend of 1.10 baht per share for 2006.

Shares of DRT closed yesterday on the SET at 16 baht, up 1.20 baht, in trade worth 11.4 million baht.

Source: Bangkok Post by Nuntawun Polkuamdee
Wednesday August 15, 2007