Posted on 22 Feb 2022
CSC Steel Holdings Bhd’s net profit more than doubled to RM86.09 million for the financial year ended Dec 31, 2021 (FY2021) from RM37.0 million in the preceding year, driven by improved product margin due to an uptrend in selling prices.
The steel coil maker said revenue also increased to RM1.47 billion from RM1.08 billion previously, mainly due to a significant rise in steel prices.
“The group’s total revenue increased by 27% or RM394 million, although sales volume was lower by 7% at 365,000 metric tonnes, compared to 394,000 metric tonnes a year earlier,” it said in a filing with Bursa Malaysia on Monday (Feb 21).
For the fourth quarter, the group’s net profit jumped to RM38.86 million from RM21.43 million a year earlier, while revenue strengthened to RM532.35 million from RM367.53 million previously.
CSC Steel has proposed a final single-tier dividend of 14 sen per share in respect of FY2021 (FY2020: seven sen) for the approval of the shareholders.
The group said the construction activity would gently pick up its pace after the 2022 Chinese New Year holiday, as a result of the gradual easing of restrictions on real estate in China.
Further, China’s injection of capital into the financial market would help to stabilise steel prices in the region, it said.
However, it noted that the Omicron variant could be a potential threat by causing short-term interruptions to the international supply chain and a slowdown in the consumption of domestic steel inventories.
“With the effects of labour shortages and the fluctuation of the international steel prices, the domestic market sentiment remains in observation mode with the projection of a weak and volatile trend. To conclude, the group will continue to remain resilient amid the current and upcoming uncertainties,” it added.
Source:The Edge
