KUALA LUMPUR: Hiap Teck Venture Bhd’s (HTVB) net profit decreased marginally to RM156.01 million in the financial year ended July 31, 2022, from RM163.43 million a year ago amid higher cost of goods sold.
In a filing with Bursa Malaysia today, HTVB said revenue rose 46 per cent year-on-year (y-o-y) to RM1.58 billion from RM1.08 billion, thanks to a higher average selling price.
In the fourth quarter, net profit fell to RM24.47 million from RM60.48 million due to a lower profit margin for the group’s downstream operating subsidiaries following higher costs of goods sold and the write-down of inventories to net realisable value.
On prospects, HTVB said the group takes cognisance of the challenges and heightened volatility in steel prices and financial markets and will continue to adopt prudent procurement strategies and inventory management to optimise financial performance and preserve balance sheet strength.
"Given the higher cost of inventories, management is highly cautious on the group’s performance in the coming quarter as the recent decline in steel prices will have an adverse effect on the group’s margin,” it said.
HTVB expects major infrastructure projects such as the Mass Rapid Transit Line 3 (MRT3) and Rapid Transit System Link will spur construction activities and help boost multi-year demand for domestic steel. - Bernama