Malaysian Steel Works Bhd (Masteel) reported revenues of MYR417.49mn ($102mn) for the September quarter (Q3), up by 54.3pc from the prior year quarter on higher sales volume and better selling price. The company expects improved demand for steel in the ensuing quarters, according to the company’s earning release.
Masteel expected a steady improvement in financial performance in the next few quarters supported by improved demand for steel products and better operating margins. The company pins its hopes on the Malaysian government’s 2021 budget which projected a 13.9pc growth in the country’s construction sector valued at MYR61.34bn. Emphasis on the development of public transport infrastructure is expected to boost demand for the company’s products. The company expressed cautious optimistic on its abilities to gain from these business opportunities in the next few quarters.
In Q3, Masteel group’s profit before tax rose to MYR6.04mn from MYR2.09mn in the prior year quarter. A strong recovery in international and local steel demand helped the company increase its sales volume and achieve better selling price in Q3. The company’s profits before tax improved amid higher revenues as well as lower operating expenses.
Compared to Q2, the company managed to returned to green after incurring a net loss of MYR22.5mn in the prior quarter due to improved margins gained from better utilisation of the new plant in Q3. Q2 was impacted by disruptions caused by the COVID-19-related restrictions.
For the nine-month period, Masteel’s revenues improved by 19.6pc to MYR1.0bn from MYR845.5mn in the prior period.
Malaysian Steel Works is a leading integrated steel producer in Malaysia which manufactures high-tensile deformed steel bars, mild steel round bars and steel billets. The company exports products to China, Australia, New Zealand, Singapore, Indonesia, Vietnam, Philippines and Papua New Guinea.