Financial Highlights

By Justin Lim

KUALA LUMPUR (Sept 28): Malaysia Steel Works (KL) Bhd (Masteel) has swung to a second-quarter profit on the back of higher sales volume and selling prices of steel bars.

It reported a net profit of RM9.39 million or earnings per share of 2.07 sen for the quarter ended June 30, 2021 (2QFY21), compared with a net loss of RM22.53 million or loss per share of 5.11 sen in the same period last year.

Quarterly revenue jumped 80.52% year-on-year to RM353.14 million from RM195.63 million.

For the six months to June, Masteel posted a net profit of RM17.78 million, compared with a net loss of RM26.7 million in the same period last year. Six-month revenue rose 33.65% to RM792.87 million from RM593.27 million.

“We could have reported an even stronger 2Q if not for the implementation of Full Movement Control Order (FMCO) in June. The improved performance was supported by the efficiency of our operations in adapting to the Covid-19 pandemic situation in Malaysia,” said Masteel managing director and chief executive officer Datuk Tai Hean Leng.

“Additionally, our strategic location in the Klang Valley near to key construction activities, along with our large capacity and reliable delivery, places us favourably in capturing the uptake in steel bar demand,” he added.

Tai said the group is heartened that lockdown restrictions have eased since this month under the National Recovery Plan, allowing the group to resume optimal production rate.

He said with the FMCO lifted, the group is now seeing steel bar orders from the construction sector resume.

“We expect steel bar demand to pose a gradual recovery to pre-FMCO levels from the second half of 2021 (2H21), supported by fulfilment of ongoing construction jobs, as well as major infrastructure projects to be rolled out.

“We will also continue to export our steel products to the regional markets where demand remains firm. Against this backdrop, we are confident of delivering resilient 2H21 performance,” he added.

Masteel’s share price closed 1.5 sen or 3.49% lower at 41.5 sen, for a market capitalisation of RM282 million.

Edited by S Kanagaraju