KUALA LUMPUR (Sept 25): Steel manufacturer Hiap Teck Venture Bhd (KL:HIAPTEK) saw its fourth quarter net profit fall 59%, weighed down by lower selling prices, reduced sales volume and weaker contributions from its joint venture.

Net profit for the three months ended July 31, 2025 (4QFY2025) came in at RM19.7 million versus RM47.6 million a year earlier, the company said in a bourse filing on Thursday.

Quarterly revenue fell 18% year-on-year to RM342.7 million from RM416.6 million.

Hiap Teck proposed a first and final dividend of 0.5 sen per share, unchanged from FY2024.

For the full financial year, the company's net profit edged up 3% to RM109.1 million from RM106.3 million in FY2024, despite revenue slipping 15% to RM1.44 billion from RM1.68 billion.

Looking ahead, Hiap Teck said global steel industry conditions remain challenging, with subdued demand growth and prices stabilising at lower levels amid supply-demand imbalances.

The sector is also impacted by China’s plans to cut output and close inefficient furnaces, while higher US tariffs have added to market uncertainty, the company noted.

By contrast, demand in South and Southeast Asia is expected to stay resilient, supported by infrastructure growth.

Hiap Teck noted that its joint venture’s hot rolled coil line is ramping up and expected to boost performance.

Its manufacturing and scaffolding segments are also improving, although the trading division remains pressured by weak pricing.

Hiap Teck’s shares ended two sen or 0.7% higher at 30.5 sen on Thursday, valuing the company at RM533.1 million. Year to date, the counter has fallen over 11%.