Although Nestle (M) Bhd reported a 17% growth in net profit and revenue for the first quarter, its gross profit margin slid to 34% from 36% a year ago. Apart from companies in the consumer sector, commodity-reliant ones like Press Metal Aluminium Holdings Bhd also faced cost pressure. “We continue to like Press Metal for its favourable market positioning in the new era of decarbonisation,” he said. Areca Capital Sdn Bhd CEO Danny Wong concurred but added that earnings growth in the plantation sector was partially offset by prolonged labour shortage issues. “Companies like Barakah Offshore [Petroleum Bhd], might have to wait for more activities in the industry, while for Dialog [Group Bhd], higher crude oil prices weigh on demand for their tank terminals,” he noted.
