Masteel net profit surges 57% to RM13.2mil in 1Q

KUALA LUMPUR: Malaysia Steel Works (KL) Bhd’s (Masteel) net profit jumped 57.4% to RM13.2mil in the first quarter ended March 31, against RM8.39mil a year prior, buoyed by higher selling prices of its steel products.

Revenue rose 4% to RM457.4mil versus RM439.7mil previously, due to the higher selling price of steel products in line with the rising of global steel prices and recovery of the Malaysian economy.

Managing director Datuk Seri Tai Hean Leng said its first quarter’s operations continued to benefit from the accelerated construction activities since the recommencement of projects in late last year after stop-work orders to curb Covid-19 were lifted.

“Coupled with the increased utilisation of our production facilities, the higher selling prices have also contributed to our improved profitability during the quarter, and bode well for the upcoming quarters as well.

“With the positive start, we are looking forward to a favourable year ahead as Malaysia transitions to an endemic phase alongside a normalised economic situation for the nation,” he said in a statement.

As the construction sector for the nation picks up and with the gradual normalisation of the international supply chain, demand for building materials is expected to be on an improving trend which would support the prices of steel in the near term.

“While optimistic of delivering a resilient FY2022 performance, we remain cautious of the trickling effects from high interest rate and inflationary pressure which could impact the global economic recovery,” Tai said.

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