KUALA LUMPUR: Shares in Masteel’s traded at the top of the gainers’ list on Bursa Malaysia after the company posted over 30-fold rise in third quarter net profit.

Masteel shares traded 15.5%, or 20 sen higher at RM1.52, its all time high. It is also one of the top traded counter with 24 million shares traded.

The company’s net profit for the third quarter surged by more than 30 times to RM38.67mil from RM1.24 million a year ago, thanks to higher selling prices of steel bar and increased sales volume.

Revenue for the third quarter ended Sept 30, 2017 grew 45.7% to RM401.4mil from RM275.4mil a year ago.

（吉隆坡10日讯）第3季业绩受看好，马钢铁工程有限公司（MASTEEL，5098，工业产品组）交投炽热。

闭市时，该股起3仙或2.31%，报1.33令吉，共673万3100股成交。

丰隆投资银行研究在报告中指出，市场预期马钢铁工程在内的钢筋公司在第3季表现更佳，得益于本地钢筋走强，以及赚幅扩大，因价格在9月触及每吨2700令吉的多年高位，目前则回跌至2450令吉，而原料价格保持低迷。

BY M. HAFIDZ MAHPAR

Photo shows a steel products at a steel production plant. Masteel aims to improve its sales volume to East Malaysia due to the mega infrastructure projects expected to be rolled out in the next five years.

KUCHING: Malaysia Steel Works (KL) Bhd (Masteel) aims to improve its sales volume to East Malaysia due to the mega infrastructure projects expected to be rolled out in the next five years.

Commenting on the group’s prospects, Masteel said, “With the recovery of steel bar prices from an average of RM1,443 per metric tonne (MT) in January 2016 to RM2,192 per MT in January 2017 which amounts to a price surge of 50 per cent, this has enabled the company to operate profitably and with more installed rebar rolling capacities becoming available this year, the revenue of the company is expected to be improved upon in the coming quarters.

“The persistently higher prices of raw materials for steelmaking such as iron ore, coking coal and scrap will ensure steel bars prices remain firm with an expected fluctuation within a narrow range of 10 per cent for the next few months.

“(Besides that), the company expects to improve its sales volume to East Malaysia due to the mega infrastructure projects in the next five years.

“In addition, with the favourable exchange rate between the ringgit and the US dollar, the company’s products will be exported to new customers in the Oceania countries.”

Meanwhile, it revealed that it has registered higher turnover and earnings for the fourth quarter of 2016 (4Q16) ended December 2016.

The company in a filing to Bursa Malaysia yesterday said 4Q16 revenue gained by 26 per cent year-on-year (y-o-y) to RM344.95 million from RM274.66 million generated in 4Q15.

At the same time, Masteel said 4Q16 earnings improved to 4.03 million from a net loss of RM1.39 million recorded in 4Q15.

Masteel in its accounts notes filed to the stock exchange explained that the increase in revenue and increase in gain incurred in the quarter ended December 2016 were attributed to higher selling price, sales volume and profit margin.

As compared to the previous quarter ended September 2016, Masteel noted the group’s revenue for 4Q16 recorded an increase of RM69.50 million to RM344.95 million due to higher selling price and improved sales volume by seven per cent.

It added the group recorded a profit before tax of RM6.22 million in the quarter ended December 2016 as compared to profit before tax of RM2.53 million achieved in the preceding quarter ended September 2016 due to higher selling price, sales volume and improved profit margin in the quarter ended December 2016.

For financial year 2016 (FY16) ended December 2016, Masteel said the group’s revenue increased by 5.5 per cent to RM1.21 billion as compared with RM1.14 billion for FY15 ended December 2015.

It explained that the improved financial results were due to higher selling price and sales volume recorded on an improved market demand and higher rebar rolling capacities.

Additionally, Masteel noted the group recorded a profit before tax of RM27.27 million for FY16 as compared with a loss before tax of RM46.39 million in FY15 due to higher profit margin achieved and lower foreign exchange loss in financial year ended December 2016.

Photo shows a steel products at a steel production plant. Masteel aims to improve its sales volume to East Malaysia due to the mega infrastructure projects expected to be rolled out in the next five years.

KUCHING: Malaysia Steel Works (KL) Bhd (Masteel) aims to improve its sales volume to East Malaysia due to the mega infrastructure projects expected to be rolled out in the next five years.

Commenting on the group’s prospects, Masteel said, “With the recovery of steel bar prices from an average of RM1,443 per metric tonne (MT) in January 2016 to RM2,192 per MT in January 2017 which amounts to a price surge of 50 per cent, this has enabled the company to operate profitably and with more installed rebar rolling capacities becoming available this year, the revenue of the company is expected to be improved upon in the coming quarters.

“The persistently higher prices of raw materials for steelmaking such as iron ore, coking coal and scrap will ensure steel bars prices remain firm with an expected fluctuation within a narrow range of 10 per cent for the next few months.

“(Besides that), the company expects to improve its sales volume to East Malaysia due to the mega infrastructure projects in the next five years.

“In addition, with the favourable exchange rate between the ringgit and the US dollar, the company’s products will be exported to new customers in the Oceania countries.”

Meanwhile, it revealed that it has registered higher turnover and earnings for the fourth quarter of 2016 (4Q16) ended December 2016.

The company in a filing to Bursa Malaysia yesterday said 4Q16 revenue gained by 26 per cent year-on-year (y-o-y) to RM344.95 million from RM274.66 million generated in 4Q15.

At the same time, Masteel said 4Q16 earnings improved to 4.03 million from a net loss of RM1.39 million recorded in 4Q15.

Masteel in its accounts notes filed to the stock exchange explained that the increase in revenue and increase in gain incurred in the quarter ended December 2016 were attributed to higher selling price, sales volume and profit margin.

As compared to the previous quarter ended September 2016, Masteel noted the group’s revenue for 4Q16 recorded an increase of RM69.50 million to RM344.95 million due to higher selling price and improved sales volume by seven per cent.

It added the group recorded a profit before tax of RM6.22 million in the quarter ended December 2016 as compared to profit before tax of RM2.53 million achieved in the preceding quarter ended September 2016 due to higher selling price, sales volume and improved profit margin in the quarter ended December 2016.

For financial year 2016 (FY16) ended December 2016, Masteel said the group’s revenue increased by 5.5 per cent to RM1.21 billion as compared with RM1.14 billion for FY15 ended December 2015.

It explained that the improved financial results were due to higher selling price and sales volume recorded on an improved market demand and higher rebar rolling capacities.

Additionally, Masteel noted the group recorded a profit before tax of RM27.27 million for FY16 as compared with a loss before tax of RM46.39 million in FY15 due to higher profit margin achieved and lower foreign exchange loss in financial year ended December 2016.

PETALING JAYA: Malaysia Steel Works (KL) Bhd (Masteel) told Bursa Malaysia in a filing yesterday a long gestation period and an impasse with the Economic Planning Unit (EPU) on the addition of “social routes” had led it to abort its Johor commuter train project.

The proposed intra-city commuter train service in Iskandar Malaysia, which would involve 100km rail network, was first reportedly approved by the Johor government in 2011.

Last month, however Masteel and joint venture partner KUB Malaysia Bhd mutually agreed to terminate the deal for the proposed RM1.23 billion rail transit network.

Masteel revealed in its announcement that since the presentation of the Johor commuter train project to the Economic Council (EC) on Aug 8, 2011, the joint venture parties had followed the direction of the EC to finalise certain issues with the Transport Ministry.

It said after coordinating with three ministers of transport, they finalised its proposal early this year for retabling to the EC.

“In a meeting with the Economic Planning Unit (EPU) on April 15, 2016 to discuss the retabling of the parties proposal to the EC, the parties was informed to undertake the addition of ‘social’ routes for its Johor commuter train services.

“After due consideration, the parties had concluded that the additional routes will render the project economically unviable,” it noted.

Masteel said the decision to terminated the agreement was on the basis that all efforts made by the parties to date with the government have not yielded a definitive timeline for the satisfactory conclusion of the project.