Malaysian Masteel Reports Strong Recovery in Q3 of 2020
Integrated steel maker Malaysia Steel Works Bhd returned to black with a net profit of MYR 3.77 million in its third quarter ended Sept 30, 2020, from a net
loss of MYR 22.53 million in the previous quarter, as it saw better margin and a rebound in demand for its steel products, amid a strong recovery in the international and local steel market. Year-on-year, however, its net profit was down 96% from MYR 86.73 million in 3QFY19, mainly because the previous year had recorded a land revaluation gain of MYR 76.65 million. Revenue surged to MYR 417.49 million from MYR 195.63 million in Q3 of 2019, due to higher selling price and volume.
For the cumulative nine months period ended Sept 30, it recorded a net loss of MYR 22.94 million versus a net profit of MYR 67.66 million a year ago, though revenue rose 20% to MYR 1.01 billion from MYR 845.45 million.
The company expects to see a steady improvement in its financial performance in the coming quarters, driven by improved demand for its steel products and operating margins. The group believes it would be able to ride on the recovery wave in the construction sector, which it expects will be a catalyst to drive demand for steel products.