KUALA LUMPUR (March 25): Steel manufacturer Hiap Teck Venture Bhd's (KL:HIAPTEK) net profit more than tripled for the second quarter, driven by higher revenue and stronger contributions from a joint-venture (JV) entity.

Net profit for the three months ended Jan 31, 2026 (2QFY2026) came in at RM68.72 million or earnings per share (EPS) of 3.95 sen, from RM20.44 million or EPS of 1.17 sen in 2QFY2025, a bourse filing showed on Wednesday.

Quarterly revenue rose 14.1% to RM397.37 million for 2QFY2026 from RM348.26 million a year earlier, mainly driven by higher sales volumes, despite softer average selling prices during the period.

The group’s share of profit from the JV entity recorded nearly threefold to RM70.62 million in 2QFY2026, from RM25.24 million in the same period last year, which it attributed to an improved operational performance, supported by a higher proportion of hot rolled coil sales during the quarter, as well as foreign exchange translation impact.

For the first half ended Jan 31, 2026 (1HFY2026), net profit more than doubled to RM112.27 million, from RM55.13 million in 1HFY2025, as revenue rose 4.21% to RM781.58 million, from RM749.98 million previously.

Looking ahead, the group flagged that global steel market conditions remain challenging, with prices continuing to face pressure amid cautious demand and persistent supply imbalances.

“Elevated steel exports from China continue to weigh on regional steel pricing, while geopolitical developments, including tensions in the Middle East, may contribute to volatility in energy prices, logistics costs and global trade flows,” it added.

Domestically, the group said the local economy remains resilient and is expected to provide continued underlying support to the construction and manufacturing sectors, which in turn supports demand for steel products.

The group said it will continue to focus on operational efficiency, prudent cost management and disciplined trading activities, while leveraging its diversified business segments to support sustainable performance in the coming quarters.

No dividends were declared year to date.

Shares in Hiap Teck ended half a sen or 1.92% lower at 25.5 sen on Wednesday, giving the group a market capitalisation of RM445.67 million.