Rising steel prices lift Tashin earnings


“The company experienced improved sales for its steel products and profit margin during Q1FY21 as the economy saw a gradual return to normalisation while business sentiments improved after one year of the Covid-19 pandemic, ” managing director Lim Choon Teik said in a press release yesterday.

KUALA LUMPUR: Steelmaker Tashin Holdings Bhd said earnings in the first quarter jumped on strong demand and rising selling prices.

Net profit in the three-month ended March 31 surged 16-fold to RM12.2mil from RM724,000 made a year ago. Revenue surged 55% to RM95.2mil. Revenue from steel processing products increased by 45% to RM68.8mil, while steel manufacturing products soared 91% to RM26.4mil.

“The company experienced improved sales for its steel products and profit margin during Q1FY21 as the economy saw a gradual return to normalisation while business sentiments improved after one year of the Covid-19 pandemic, ” managing director Lim Choon Teik said in a press release yesterday.

Lim expected the economic recovery to lift demand in the steel processing segment and steel pipes business, as well as increased sales order from automotive segment.

But he cautioned that the shortage of certain types of steel material such as cold rolled materials may post a challenge to the company’s operations.

“Barring unforeseen circumstances, the board is cautiously optimistic that the company’s prospects for the coming quarter would remain positive and satisfactory due to higher demand in the steel processing segment and steel pipes and increased sales order from automotive segment, ” he said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Tashin , steel , price , ernings , Lim Choon Teik ,

   

Next In Business News

LBS Bina records property sales of RM684m as at end-July
Airline industry statistics confirm 2020 as worst year on record
Merchantrade Asia, NPCI offer real-time remittances to India
DNeX’s SilTerra bags RM1.69b long-term contract from China’s Chipone
Solarvest bags RM66m contract for solar PV plant in Perak
Political turmoil spurs selling on Bursa
Hong Leong Bank launches virtual hackathon Asean edition focused on ESG
Growth in China's July services activity speeds up, but risks loom
Ringgit opens lower on Brent crude decline
Singapore banks report strong profit growth, loan losses decline

Stories You'll Enjoy


Vouchers