KUALA LUMPUR (Feb 21): CSC Steel Holdings Bhd (KL:CSCSTEL) reported an 8.2% rise in net profit to RM11.35 million for the fourth quarter ended Dec 31, 2024 (4QFY2024), from RM10.49 million a year earlier, driven by favourable exchange rate movements that helped lower its cost of sales.

Quarterly revenue, however, fell 8.37% to RM345.02 million from RM376.56 million in 4QFY2023, as intensified competition from lower-priced imports — following the expiration of anti-dumping duties — put downward pressure on steel prices.

No dividend was declared for the quarter.

In its results announcement, the flat steel manufacturer warned of significant challenges amid a slowdown in China’s construction sector, weak domestic consumption, and persistently low demand, which are expected to weigh further on steel prices. Additionally, as China ramps up steel exports, international order flows may face further disruptions.

In Malaysia, the industry is bracing for mounting cost pressures, particularly from potential hikes in electricity prices, carbon taxes, and minimum wages, said the company.

“Additionally, local manufacturers will face fierce competition from low-cost imported steel and a softening global market demand,” said the company.

Despite these headwinds, CSC Steel highlighted its resilience and adaptability in addressing market challenges. “CSC Malaysia has demonstrated notable resilience and adaptability in addressing these challenges, remaining committed to meeting market demands while delivering high-quality services to clients and contributing positively to national development,” it said.

For the full financial year, CSC Steel’s net profit declined 30.96% to RM34.16 million from RM49.48 million in FY2023, while revenue slipped 2.93% to RM1.51 billion from RM1.56 billion due to lower steel prices.

CSC Steel’s shares closed up one sen or 0.87% at RM1.16 on Friday, giving the company a market capitalisation of RM424.7 million.