KUALA LUMPUR (Nov 13): Cash-rich Lysaght Galvanized Steel Bhd (KL:LYSAGHT) has declared a special dividend of 35 sen per share as its quarterly earnings rose to an eight-year high.

This brings the total dividend declared to 43 sen per share in the current financial year ending Dec 31, 2024 (FY2024) so far — the highest since FY2018 when it paid out 50 sen dividend per share.  The steel pole and masts maker, which is in a net cash position of RM97 million as at end-September, will pay the special dividend of RM14.56 million in total on Dec 9. 

Lysaght’s shares were last traded at RM2.70, giving the group a market capitalisation of RM112 million.

Earnings wise, Lysaght fared well in the third quarter ended Sept 30, 2024 (3QFY2024). It posted a net profit of RM4.79 million, up 62% from a year earlier. This is the group's highest net profit since 4QFY2018 when it achieved a net profit of RM4.79 million.

Quarterly revenue grew 9.2% to RM26.5 million from RM24.27 million. 

The latest quarterly revenue is also the highest since 3QFY2017, when the group posted a revenue of RM26.83 million.

For the nine months of FY2024, Lysaght's net profit climbed 39.3% year-on-year to RM11.18 million from RM8.02 million, while cumulative revenue increased 19.3% to RM72.81 million from RM61.02 million.

However, Lysaght said the coming quarters will remain challenging given the foreign exchange volatility, slowing global economy with geopolitical tensions, inflationary costs pressures, and increase in competition with lower quality products.

Lysaght Malaysia Sdn Bhd is the company’s single largest shareholder controlling 55.14% stake, followed by Ingli Sdn Bhd with 15.46%.