Malaysian steel maker Hiap Teck Venture recorded a net profit of MYR 24.48 million in the fourth quarter ended on 31 July 2022, a 60% drop from MYR 60.48 million in the same quarter last year amid lower profit margin for its downstream operating subsidiaries as a result of the higher cost of goods sold and the write-down of inventories to net realizable value. The group's quarterly revenue, in contrast, jumped 135% YoY to MYR 386.5 million from MYR 164.83 million, mainly contributed by both higher sales volume and average selling priceFor the full FY22, Hiap Teck's net profit slipped by 5% YoY to MYR 156.01 million from MYR 163.43 million despite revenue climbing by 46% to MYR 1.58 billion from MYR 1.08 billion.Hiap Teck said it takes cognizance of the challenges and heightened volatility in steel prices and financial markets, and will continue to adopt prudent procurement strategies and inventory management to optimize financial performance and preserve balance sheet strength. Given the higher cost of inventories, Hiap Teck's management is highly cautious about the group's performance in the coming quarter as the recent decline in steel prices will have an adverse effect on the group's margins.Hiap Teck Venture Berhad in Malaysia was incorporated in 1993. Through its successful wholly-owned subsidiaries, HTVB holds more than 25 years of extensive steel industry experience, offering one-stop steel product solutions for steel application to a diverse customer base both domestic and international in multiple sectors such as building construction, manufacturing, engineering and oil and gas.
Malaysian steel maker Hiap Teck Venture recorded a net profit of MYR 24.48 million in the fourth quarter ended on 31 July 2022, a 60% drop from MYR 60.48 million in the same quarter last year amid lower profit margin for its downstream operating subsidiaries as a result of the higher cost of goods sold and the write-down of inventories to net realizable value. The group's quarterly revenue, in contrast, jumped 135% YoY to MYR 386.5 million from MYR 164.83 million, mainly contributed by both higher sales volume and average selling priceFor the full FY22, Hiap Teck's net profit slipped by 5% YoY to MYR 156.01 million from MYR 163.43 million despite revenue climbing by 46% to MYR 1.58 billion from MYR 1.08 billion.Hiap Teck said it takes cognizance of the challenges and heightened volatility in steel prices and financial markets, and will continue to adopt prudent procurement strategies and inventory management to optimize financial performance and preserve balance sheet strength. Given the higher cost of inventories, Hiap Teck's management is highly cautious about the group's performance in the coming quarter as the recent decline in steel prices will have an adverse effect on the group's margins.Hiap Teck Venture Berhad in Malaysia was incorporated in 1993. Through its successful wholly-owned subsidiaries, HTVB holds more than 25 years of extensive steel industry experience, offering one-stop steel product solutions for steel application to a diverse customer base both domestic and international in multiple sectors such as building construction, manufacturing, engineering and oil and gas.
