PETALING JAYA: Steel products and equipment maker, Prestar Resources Bhd, has reported a strong set of financial results in the first quarter ended March 31,2021 (Q1), boosted by firm demand for its steel products.
Net profit for the quarter jumped to RM18.34mil from RM4.06mil a year ago, while revenue increased by 49.6% to RM140.18mil from RM93.70mil. Its earnings per share rose to 9.45 sen from 2.09 sen previously.
Prestar attributed the strong financial performance to the strong demand for its steel products from its various customers in different segments of the industry, as the economic recovery picked up pace despite the travel curbs due to the Covid-19 pandemic.
Demand remained stronger in Q1 despite the re-imposition of the movement control order (MCO) and the conditional MCO (CMCO) in most of the states in the quarter under review.
Group managing director Datuk Toh Yew Peng (pic) said the strong performance by most of the subsidiaries was in line with the higher export growth registered by Malaysia.
“The company’s steel pipes and guardrails divisions recorded strong demand from our customers from different sectors which increased their purchases despite the higher material prices.
“This resulted in an impressive growth in net profit for the just-ended quarter due to better margins for our products aided by contributions from our two associate companies of the group, namely, Posco-MKPC Sdn Bhd and Tashin Holdings Bhd,” he said in a statement.
Toh said for the steel industry, especially the flat steel players, the post lockdown recovery in demand from the rest of the world was stronger than expected and this caused a global shortage and rising global steel prices.
“This resulted in Prestar experiencing higher demand for its products with better margins. The board expects this trend to continue for the remaining financial year, ” he said. It also plans to place out up to 10% of its issued shares to raise around RM20.50mil.