HTVB saw first-quarter net profit climbing by 25.3% year-on-year to RM43.5mil.
PETALING JAYA: Steel products producer Hiap Teck Venture Bhd
(HTVB) believes policy developments will continue to shape the manufacturing sector’s outlook with the Steel Industry Roadmap 2035 providing clearer direction on capacity rationalisation, compliance and the transition to low-carbon steelmaking.
The group said the confirmed implementation of a carbon tax from next year is also expected to influence cost structures and competitiveness across the industry.
Releasing its results for its first quarter ended Oct 31 (1Q26) yesterday, HTVB saw net profit climbing by 25.3% year-on-year (y-o-y) to RM43.5mil, translating to earnings per share of 2.5 sen, despite revenue actually sliding 4.4% to RM384.2mil.
The group said that the weaker topline was the result of lower selling prices, which affected both its trading and manufacturing divisions. However, profitability improved primarily due to lower costs in selling their goods as well as a reversal of a write-down of inventories to net realisable value amounting to RM4.5mil in 1Q26.
On the other hand, it said: “Our share of profit from a joint venture (JV) entity decreased by 15% to RM35.8mil from RM41.9mil previously.
“Despite a stronger underlying operating performance supported by improved gross profit margins in the quarter, the JV’s results were lower primarily due to reduced positive impact from unrealised foreign exchange translation, which significantly boosted the comparative quarter’s performance.”
Compared with the preceding quarter, HTVB reported that its bottomline more than doubled from RM19.7mil, as turnover also increased 12% from RM342.7mil, which was mainly driven by higher sales volumes.
