Stock Digest - Asia File Corporation Bhd - Weaker Foreign Currency, Increased Costs Hampered Margins

YoY, the decline in core net profit was due primarily to the weakening of both GBP and EURO which has affected the group’s bottom line. GBP/MYR contracted from 5.65 to 5.17 while EURO/MYR dropped from 4.85 to 4.55 YoY. Besides, the significant decline in GBP/USD and EURO/USD of more than 15.0% for the past one year has put additional pressure on ASIAFLE’s margin as majority of its export proceeds are denominated in GBP and EURO while imports are mainly denominated in USD.