Posted on 20 Nov 2025
Shares of CSC Steel Holdings Bhd (KL:CSCSTEL) on Monday rose to their highest in 16 months after reporting a set of strong quarterly results.
TA Securities, the sole research house covering the stock, said CSC Steel's year-to-date earnings outperformed its expectations and has reached 89% of its full-year projections with just one more quarter left in the year. The house also maintained its ‘buy’ call and raised its target price to RM1.40.
“Globally, steel prices are showing signs of stabilisation aided by China’s production rationalisation efforts” amid elevated export volume, the research house said. Domestically, policy commitment to infrastructure development, industrial decarbonisation and anti-dumping are also positives, the house noted.
CSC Steel added 11 sen or 9% to RM1.29, its highest since July 2024, after nearly 2.5 million shares changed hands on Monday. At the closing price, the steel products maker had a market capitalisation of RM490 million.
Shares of CSC Steel are now up 15% year to date, having erased most of their losses suffered during the Trump tariff tantrum in the beginning of the year. TA Securities’ latest forecast is for CSC Steel to make a net profit of RM68 million for the full 2025, a near threefold jump from 2024.
The challenge now, however, is navigating the industry supply glut and pricing pressure from imports, particularly from China.
Malaysian steel producers are also facing pressures from the impending carbon tax framework, higher energy costs, wider sales and service tax coverage, and other operating costs, TA Securities said.
“These rising cost pressures could eventually pass through to downstream prices and may weigh on profitability margins in the interim,” the house added.
Source:The Edge
