The group said said Pantech Stainless & Alloy Industries Sdn Bhd and Pantech Steel Industries Sdn Bhd may be listed via a special-purpose vehicle.
PETALING JAYA: Pantech Group Holdings Bhd
is looking to de-merge its stainless steel and carbon steel pipe manufacturing subsidiaries for an eventual listing on the Main Market.
In a filing with Bursa Malaysia, it said Pantech Stainless & Alloy Industries Sdn Bhd and Pantech Steel Industries Sdn Bhd may be listed via a special-purpose vehicle.
“The board wishes to highlight that the proposed listing is still in its preliminary stage, where extensive preparatory work is required to be carried out. The details in relation to the proposed listing have yet to be determined at this stage,” it said.
This was announced on the same day Pantech reported a sharp contraction in its manufacturing segment’s profits for the financial year ended Feb 29, 2024 (FY24).
It dragged down the group’s full-year net profit by 9% year-on-year (y-o-y) to RM105.3mil, despite stronger contribution from the trading segment.
Revenue for FY24 also fell by nearly 9% on-year to RM946.3mil.
The trading segment’s bottom line benefited from higher deliveries to local oil and gas sector and better product mix, while the manufacturing segment was affected by lower demand for stainless steel products and reduced average selling prices.
Despite the softer full-year results, Pantech’s fourth-quarter financial performance was more positive.
The net profit for the December 2023 to February 2024 period jumped by nearly 22% y-o-y to RM28.74mil.
This was achieved on the back of stronger bottom line contribution from the trading segment, although partially offset by a sharp contraction in the manufacturing segment and the losses in the investment and management segment.
Revenue increased by 16.5% y-o-y to RM229.75mil.
