KUALA LUMPUR (May 5): Prestar Resources Bhd saw its net profit jump 351% to RM18.33 million in its first quarter ended March 31, 2021 (1QFY21) from RM4.07 million a year earlier, thanks to strong demand for its steel products.

Earnings per share rose to 9.45 sen from 2.09 sen, the steel products and equipment maker said in a filing with Bursa Malaysia.

Revenue rose 49.6% to RM140.18 million from RM93.7 million in 1QFY20.

On a quarter-on-quarter basis, Prestar said its net profit grew 16.3% from RM15.76 million in 4QFY20, while revenue increased 2.3% from RM137.05 million.

The group declared a first interim dividend of one sen per share amounting to RM1.94 million, to be paid on a date to be announced later.

In a separate statement, group managing director Datuk Toh Yew Peng said the strong performances by most of the subsidiaries were in line with the higher export growth registered by Malaysia.

“The company’s steel pipes and guardrails divisions recorded strong demand from our customers from different sectors which increased their purchases despite the higher material prices,” he added.

Toh said for the steel industry, especially the flat steel players, the post-lockdown recovery in demand from the rest of the world was stronger than expected, and this caused a global shortage and rising global steel prices.

“This resulted in Prestar experiencing higher demand for its products with better margins. The Board expects this trend to continue for the remaining financial year,” he said.

Prestar’s share price closed 10 sen or 7.41% lower at RM1.25 today, valuing the group at RM256.15 million. Over the past year, the counter has gained 268% from 34 sen.