KUALA LUMPUR: Asteel Group Bhd
is proposing to diversify its business to include the provision of information technology (IT)- related consultancy, development and outsourced services as well as IT trading.
In a filing with Bursa Malaysia, Asteel noted that it had incurred losses on a yearly basis from 2023 to 2025, owing to its manufacturing and trading business.
It said the losses were mainly attributable to fluctuations in steel prices and foreign currency exchange rates, rising operating costs, subdued market demand and delays in project implementation, which resulted in cost overruns.
The proposed diversification aims to create an additional revenue stream for the group to reduce its reliance on the manufacturing and trading business.
The board of directors is seeking shareholder approval for the diversification as it anticipates the IT business to result in either a contribution of 25% or more of the net profits of the group or the diversion of 25% or more of the net assets to operations that differ widely from operations previously carried on by the group.
"The Board is cautiously optimistic about the group's future prospects, and is of the view that the continued implementation of measures to improve its existing operations, together with the proposed diversification, may contribute positively to the group's long-term growth," it said.
In a separate filing, Asteel reported a net profit of RM348,000 in the third quarter ended Sept 30, 2026, as compared to RM141,000 in the year-ago quarter. Quarterly revenue rose to RM83.96mil form RM69.49mil in the previous corresponding quarter.
Over a nine-month period, the net profit came to RM1.99mil as compared to RM360,000 in the same period in 2026, while revenue rose to RM228.69mil from RM194.3mil previously.
