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Home / 2008 Annual Report: Managing Director/CEO’s Statement


During the financial year under review, 2008 represents significant improvement of sale and profit over the previous year. A turnover of RM881.2million was achieved with a profit before tax of RM85.7million.

This performance was attributed to the exceptional demand and high prices of steel from China and the Middle East. The previous years’ investment by the company in technological equipment, process and training for cost reduction had resulted in improved operational efficiency which was completed in time to capitalize on the exceptional market condition of 2008.

The management’s conservative stance in late July 2008 that resulted in the rapid reduction in the company’s raw material purchase for the 3rd quarter and 4th quarter had spared the company from severe stock value impairment and write downs.


With the onset of the global financial crisis triggered by the widespread U.S subprime housing mortgage defaults in the 2nd half of 2008, this had resulted in the substantial contraction of Gross Domestic Product (GDP) in many countries worldwide.

And as a consequence, the demand for steel is expected to be significantly reduced. A period of soft uptake and price volatility is expected to prevail for most part of 2009.

The effects of various governments’ rescue packages are expected to be felt in late 2009 onwards. The Malaysian government’s stimulus budgets of RM7.0 billion and RM60.0 billion coupled with the expenditure from the 9th Malaysia Plan is expected to help to stabilise steel prices domestically and improve the demand for steel products during the later part of 2009.


There is no placement took place during the year as the investment community took a cautious stand on various sectors and with the lower share price, the management decided to wait for the right opportunity to come by again when the stock market improves in the future.


Under the Corporate Social Responsibility (CSR) initiatives, the Group continues to improve on our plant environment by planting trees to enhance our ‘green lung’ programme initiated during 2007. A sum of RM130,000 has been spent on this CSR project.


On behalf of the board, I would like to take this opportunity to thank our valuable clients, shareholders, bankers, suppliers, and relevant government authorities for their continuous supports to our group. My appreciation is also extended to the management and staffs for their hard work and contributions during the year.


Managing Director/Chief Executive Officer

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