Summary: CSC Steel Holdings Bhd's net profit for 2QFY2023 decreased by 12.71% to RM14.9 million compared to the previous year, primarily due to lower revenue and the absence of investment property disposal gains. Earnings per share declined to 4.03 sen from 4.62 sen. The company reported a revenue drop of 28.22% to RM372.98 million, attributed to weakened export sales volumes and lower average selling prices. Despite this, the company's net profit for 6MFY2023 increased by 5.22%, totaling RM30.64 million, with a decline in revenue due to decreasing steel prices.Navigating Uncertain Terrain: Market Volatility and Domestic Demand CSC Steel anticipates market volatility in the third quarter of 2023, citing various factors such as global economic conditions, inflation, energy prices, and interest rate changes. While the Chinese government's efforts to reduce steel production could lead to slight price increases, these factors contribute to an unpredictable steel market. Similarly, the company expects domestic demand in Malaysia to remain uncertain, influenced by trade barriers and cost inflation.Strategic Insights: Adaptation and Mitigation In response to the challenges posed by the dynamic market landscape, CSC Steel is committed to closely monitoring the steel market. The company plans to implement strategic measures to mitigate risks and ensure optimal steel quality while maintaining a high level of customer service.
Summary: CSC Steel Holdings Bhd's net profit for 2QFY2023 decreased by 12.71% to RM14.9 million compared to the previous year, primarily due to lower revenue and the absence of investment property disposal gains. Earnings per share declined to 4.03 sen from 4.62 sen. The company reported a revenue drop of 28.22% to RM372.98 million, attributed to weakened export sales volumes and lower average selling prices. Despite this, the company's net profit for 6MFY2023 increased by 5.22%, totaling RM30.64 million, with a decline in revenue due to decreasing steel prices.Navigating Uncertain Terrain: Market Volatility and Domestic Demand CSC Steel anticipates market volatility in the third quarter of 2023, citing various factors such as global economic conditions, inflation, energy prices, and interest rate changes. While the Chinese government's efforts to reduce steel production could lead to slight price increases, these factors contribute to an unpredictable steel market. Similarly, the company expects domestic demand in Malaysia to remain uncertain, influenced by trade barriers and cost inflation.Strategic Insights: Adaptation and Mitigation In response to the challenges posed by the dynamic market landscape, CSC Steel is committed to closely monitoring the steel market. The company plans to implement strategic measures to mitigate risks and ensure optimal steel quality while maintaining a high level of customer service.
