Hiap Teck’s 4Q net profit jumps 74% to RM42.6mil

KUALA LUMPUR: Hiap Teck Venture Bhd remains cautious due to potential challenges and increased volatility in steel prices, financial markets, and geopolitical tensions, both domestically and externally.

“Management will continue to adopt prudent procurement strategies and inventory management to optimise financial performance and preserve balance sheet strength in order to stay vigilant and navigate through this challenging period,” Hiap Teck said.

The group said with the successful ignition of the new 2.0 million MT blast furnace in August 2023, the joint venture (JV) entity’s steel production capacity has increased from 0.70 million MT to 2.7 million MT.

“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 cost savings arising from the greater economy of scale. The group looks forward to greater contributions from the JV entity,” Hiap Teck said.

Hiap Teck’s net profit jumped 74.1% to RM42.6mil, or earnings per share of 2.45 sen in the fourth quarter ended July 31 compared with RM24.5mil, or 1.41 sen a year ago.

Revenue rose 17.4% to RM453.8mil against RM386.5mil.

For the full financial year ended July 31 (FY23), Hiap Teck posted a net profit of RM30.9mil on revenue of RM1.6bil.

The board of directors is pleased to propose a first and final single-tier dividend of 0.50 sen per share for FY23, subject to shareholders’ approval at the forthcoming annual general meeting.

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