Choo Bee Metal Q1 Net Profit Soars on Surging Steel Prices
Malaysian steel pipe maker Choo Bee Metal Industries net profit in January-March 2021 quarter swelled due to high steel prices. The company posted a
Malaysian steel pipe maker Choo Bee Metal Industries net profit in January-March 2021 quarter swelled due to high steel prices. The company posted a net profit of MYR 27.3 million in January-March 2021 as compared with MYR 3.6million I January-March 2020 quarter. Revenue was up by 80% YoY to MYR 136 million. Choo Bee said further impetus driving steel prices were attributed to stronger demand led by China, yet steel supply remains inadequate due to logistics delays and mill capacity issues attributed to the Covid-19 pandemic.
The company expects local steel prices to remain high. It said "Despite lower construction activities impacting demand, profit margins have expanded in tandem with the heightened prices by all manufacturers. The revival of the construction sector and governmental infrastructure spending in Mass Rapid Transit Line 3, Klang Valley First Phase Double Tracking Project, etc remains crucial to drive demand growth for the local steel industry.”
The Choo Bee Group started as a scrap metal trader operating from a shared shop lot in the mid 1940s and has expanded to become one of the leading steel tube and pipe manufacturer and distributor of steel products in Malaysia. The flagship company of the group, Choo Bee Metal Industries Bhd, which is listed on the main board of the Kuala Lumpur Stock Exchange, is manufacturing ERW pipes. Choo Bee Metal Industries Berhad owns a manufacturing plant in Ipoh, situated in Pengkalan Industrial Estates with a total production of 200,000 tonnes per annum.