PETALING JAYA: Saliran Group Bhd is confident that its prospects in the supply and distribution of pipes, fittings and flanges as well as steel products primarily for the oil and gas industry are favourable, taking into consideration its competitive strengths and business strategies.
It is also hopeful on the outlook of the pipes, fittings and flanges as well as steel products industry, which it said is in line with the government’s positive market outlook, fuelled by sustained growth from Malaysia’s domestic oil and gas industry as well as infrastructure development that is expected to drive sales growth.
Releasing its results for the final quarter of financial year 2024 (4Q24) and cumulatively for the year (FY24) yesterday, Saliran Group registered a net profit of RM3.72mil, underpinned by a revenue of RM95.6mil.
For the whole of FY24, it posted net earnings of RM13.24mil, while charting a turnover of RM344.5mil.
It is interesting to note that Saliran Group will be listed tomorrow on the ACE Market of Bursa Malaysia, and its initial public offering (IPO), priced at 27 sen per share, is aimed to raise RM21.71mil and was oversubscribed by 76.03 times, indicating strong investor interest.
The group said Malaysia was its largest overall market, recording revenue of RM60.45mil or 63.26% of its revenue for the current financial quarter and RM227.56 million or 66.06% of its turnover for FY24.
While recording net profit for both the quarter and cumulative for the year, Saliran Group reported that expenses included staff costs and directors’ remuneration, realised losses on foreign exchange, depreciation of property, plant and equipment, investment properties and right-of-use assets, and listing expenses attributable to the IPO.
Looking outward, it said the global steel market continues to face challenges, citing that the World Steel Association projected back in October 2024 that the market would see a 0.9% contraction that year.
“The decline is primarily caused by subdued demand in China due to ongoing weakness in its real estate and manufacturing sectors.
“The concluded United States presidential election may also have future implications which may affect global economic policies, and trade relations amongst other countries,” it said in a statement to Bursa Malaysia.
However, Saliran Group noted that domestic confidence is bolstered by the anticipated increase in activities in the construction sector which is supported by the RM86bil allocation for Development Expenditures in Budget 2025.
“The impending carbon tax on the steel industry, announced in Budget 2025 and set for implementation by 2026, presents both challenges and opportunities.
“The upstream joint venture entity is closely assessing how to align with these new environmental regulations, which could impact operational costs,” the group added.
