KUALA LUMPUR (Sept 27): Hiap Teck Ventures Bhd’s net profit for the full year ended July 31, 2023 (FY2023) declined 80% to RM30.91 million from RM156.01 million reported in the previous year (FY2022), due to lower profit from its operations.
Consequently, earnings per share fell to 1.77 sen from nine sen, its Bursa Malaysia filing showed on Wednesday.
The steel company’s annual revenue was marginally higher at RM1.59 billion, compared to RM1.58 billion a year earlier, supported by higher sales volume.
For the fourth quarter ended July 31, 2023 (4QFY2023), the group’s net profit climbed 74.06% higher to RM42.60 million, compared to RM24.48 million posted in the previous year’s corresponding quarter, contributed by higher profit from the group’s downstream operating subsidiaries.
4QFY2023 revenue came in 17.41% higher to RM453.79 million from RM386.50 million, underpinned by higher contribution from its trading division.
The group also declared its first and final single tier dividend of 0.5 sen per share.
On a quarterly basis, the group’s net profit increased by 171% from RM15.53 million reported in the immediate preceding quarter (3QFY2023), while revenue surged by 21.65% from RM373.03 million.
Moving forward, the group will continue to adopt prudent procurement strategies and inventory management to optimise financial performance and preserve balance sheet strength, in order to stay vigilant and navigate through this challenging period.
“With the successful ignition of the new two million metric tonnes (MT) blast furnace in August 2023, the joint venture (JV) entity’s steel production capacity has increased from 0.70 million MT to 2.7 million MT.
“This expansion in capacity, together with the progressive completion of the plant’s auxiliary facilities, will lead to multi-fold increase in the JV entity’s revenue, with significant cost savings arising from the greater economy of scale,” it said.
Shares in Hiap Teck closed 0.05 sen or 1.16% higher to 43.5 sen on Wednesday, giving it a market capitalisation of RM760.26 million.