PETALING JAYA: Hiap Teck Venture Bhd
will continue to focus on operational efficiency, prudent cost management and disciplined trading, while leveraging its diversified business segments to sustain performance in the coming quarters.
The steel pipe manufacturer said the global steel market conditions remained challenging, with prices continuing to face pressure amid cautious demand and persistent supply imbalances.
“Elevated steel exports from China continue to weigh on regional steel pricing, while geopolitical developments, including tensions in the Middle East, may contribute to volatility in energy prices, logistics costs and global trade flows,” Hiap Teck said in a filing with Bursa Malaysia.
For the second quarter ended Jan 31, Hiap Teck’s net profit more than tripled to RM68.8mil, or earnings per share of 3.95 sen, largely driven by stronger contribution from its joint venture, bringing first-half profit to RM112.3mil, or 6.44 sen.
Quarterly revenue rose 14.1% to RM397.4mil, mainly driven by higher trading volumes despite continued softness in average selling prices, lifting first-half revenue 4.21% to RM781.6mil.
Hiap Teck said ongoing policy initiatives such as the Steel Industry Roadmap 2035 (SIR2035), together with the gradual carbon-related regulations, are expected to shape the Malaysian steel industry’s long-term development, particularly in rationalisation, compliance and sustainability.
“Operationally, the joint venture’s 1,450 mm hot rolled coil production line continues to improve its operational performance and utilisation, which is expected to enhance operating efficiency and contribute positively to the group,” it said.
