KUALA LUMPUR, Nov 24 — Malaysia Steel Works (KL) Bhd’s (Masteel) shares soared in the morning session today after posting an almost 10 times increase in pre-tax profit and 31-fold rise in net profit in the third quarter (Q3) financial results.
Revenue rose 45.7 per cent to RM401.4 million from RM275.5 million previously.
At 11.46 am, Masteel shares perked 20 sen to RM1.52 with 28.45 million shares changing hands.
The company in a filing to Bursa Malaysia yesterday said the stellar top line and bottom line growth was attributed to higher selling prices of steel bar and increased sales volume, on the back of improving market conditions and robust demand from the domestic construction industry.
“We are benefiting from improved market conditions, led by stabilising international steel bar prices and reduction in capacity by various steel mills in China.
“This has contributed to better selling prices and stronger sales,” Managing Director and Chief Executive Officer, Datuk Seri Tai Hean Leng said.
He said the company was benefited from its new rolling mill in Bukit Raja, Klang, which produces premium-grade steel bars that fetch better margins
On prospect, he said the company would continue to benefit from strong demand for steel bars on the back of a vibrant construction industry, driven by numerous public infrastructure and transport projects.
“The company is operating at optimal capacity utilisation and is set for strong performance for the rest of the year,” he added. — Bernama
