The steel producer’s revenue increased by 17% year-on-year to RM453.8mil.
PETALING JAYA: Hiap Teck Venture Bhd
remains cautious of developments on both the domestic and external fronts, particularly on the challenges caused by heightened volatility in steel prices, financial markets and geopolitical tensions.
For the fourth quarter ended July 31, 2023 (4Q23), the steel producer’s revenue increased by 17% year-on-year (y-o-y) to RM453.8mil, underpinned by higher sales volume notwithstanding lower average selling prices in the quarter.
Net profit rose by 74% y-o-y to RM42.6mil or earnings per share of 2.45 sen on higher profit from the group’s downstream businesses.
In a filing with Bursa Malaysia, Hiap Teck said profit from operations for the quarter of RM25.66mil, which was a substantial improvement compared to the preceding year’s corresponding quarter of RM5.67mil, was due to better margins and the reversal of writedown of inventories to net realisable value amounting to RM8.03mil.
In order to optimise financial performance and preserve balance sheet strength, it will continue to adopt prudent procurement strategies and inventory management.
“With the successful ignition of the two million tonnes blast furnace in August, the joint venture (JV) entity’s steel production capacity has increased from 0.70 million tonnes to 2.7 million tonnes.
“This expansion in capacity, together with the progressive completion of the plant’s auxiliary facilities, will lead to multi-folds increase in the JV entity’s revenue with significant costs saving arising from the greater economy of scale.
“The group looks forward to greater contributions from the JV entity,” it said.
