KUALA LUMPUR (Feb 9): Flat steel manufacturer CSC Steel Holdings Bhd (KL:CSCSTEL) doubled its net profit for its latest fiscal year, on the back of lower raw material costs and favourable exchange rates.
This came despite lower revenue, as lower average selling prices outweighed a slight increase in sales volume, the group said in a bourse filing on Monday.
Net profit for the full year ended Dec 31, 2025 (FY2025) doubled to RM69.44 million — its highest in four years — from RM34.16 million a year earlier, while revenue dropped 8.8% to RM1.38 billion as compared to RM1.51 billion.
The group ended the year strong with a 61.7% rise in net profit for the final quarter of the fiscal year.
Net profit for the three months ended Dec 31, 2025 (4QFY2025) rose to RM18.35 million compared to RM11.35 million a year earlier. Revenue slipped 4.2% to RM330.41 million from RM345.02 million previously.
The group proposed a final dividend of 14.1 sen per share, subject to shareholders’ approval at its annual general meeting.
Looking ahead, CSC Steel said it sees a gradual recovery in steel prices, supported by improving demand conditions alongside ongoing supply-side adjustments.
China’s implementation of an export licence system for key Chinese products is expected to alleviate regional supply imbalances, further complemented by strengthened trade protection measures in the US, EU, Mexico and Canada.
Domestically, CSC Steel said the steel industry is navigating a balanced environment characterised by emerging cost pressures and resilient demand drivers.
Cost pressures from the implementation of carbon taxation and supply chain adjustments are expected to be partially offset by favourable exchange rates, while baseline steel demand remains anchored by consistent construction activity, the group noted.
“In view of these dynamics, the group will continue to adopt a disciplined yet opportunistic approach, prioritising cost efficiency, selective inventory management, and operational excellence,” it said.
According to AskEdge data, the company has the highest price-to-earnings ratio among its peers at 8.9 times.
Shares in CSC Steel ended unchanged at RM1.50, valuing the group at RM570 million.