Kronologi Asia Profits Drop, Yet Remains Hopeful Ahead Despite China Problems

 Kronologi Asia’s earnings didn’t meet expectations due to slow recovery and higher operating costs. They made RM6.6 million in the last nine months, which is less than we thought. Despite this, the company thinks things will get better in the long run.

In the latest financial review, their profits dropped by 86.1% compared to the same time last year, mostly because of lower contributions from their technology segment in China and higher operating costs. Their sales also went down by 14.9% to RM67.7 million.

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For the year so far, they’ve only made 29% of the profit we expected. This happened because their business in China didn’t recover as fast as predicted, and they had more costs than planned, especially for things like equipment and selling. They say this happened because they were trying hard to get more customers.

Their technology business had a decrease in sales and profits, except for one part that stayed stable. Most of their sales were about the same, except in China, where things went down a lot.

Kronologi Asia – Economic growth

There’s hope for the future, though. Experts think Asia’s economy will grow by about 4.2% next year, which is good news. Krono focuses on Asia, so they might do better as the economy there grows, even if the rest of the world doesn’t.

Krono thinks they’ll do better next year as the economy improves. They’re also hopeful about their business in China because more Chinese companies want their own data systems.

Although their expected earnings for this year went down by 44% because of higher costs, they still think things will pick up in 2025. They suggest buying Krono’s stock, setting a target price of RM0.53.

The main risk is that their sales might not catch up with the growing costs because they’re trying so hard to get more customers, says Apex Research.