KUALA LUMPUR (Sept 24): Steel manufacturer Hiap Teck Venture Bhd (KL:HIAPTEK) reported a 2.25% rise in net profit for the fourth quarter due to better margins even as revenue slipped on lower sales and average steel product prices.

Net profit for the three months ended July 31, 2026 (4QFY2026) came in at RM20.15 million versus RM19.71 million a year earlier, the company said in a bourse filing on Thursday. However, revenue fell 28% year-on-year to RM246.56 million from RM342.74 million.

The year-on-year profit increased despite the fall in revenue due to improved margins in the manufacturing segment and reduced losses from the trading segment. 

The reduced revenue in quarter under review was attributed to lower sales volumes and average selling prices. 

Trading, and manufacturing and scaffolding are the two out of Hiap Teck's six segments that contribute the most to the group, accounting for 52.5% and 46.4% of its total revenue, respectively.

Hiap Teck proposed a first and final dividend of 0.7 sen per share, up from 0.5 sen per share from FY2025.

For the full financial year, the company's net profit edged up 26.3% to RM137.8 million from RM109.1 million in FY2025 despite revenue slipping marginally to RM1.43 billion from RM1.44 billion.

Looking ahead, Hiap Teck said the global steel industry   remained challenging, with subdued demand growth and pricing pressure amid supply‑demand imbalances.

The group, however, is confident that domestic steel demand will be resilient, supported by infrastructure development, manufacturing activity, new industrial investments and the rapid expansion of the data centre sector.

“At the same time, the group remains mindful of competitive pressures arising from global steel overcapacity and exports from major producing countries,” it noted.

Operationally, Hiap Teck's joint venture with China's Jianlong Group, which operates a 1,450mm hot rolled coil production line in Kemaman, Terengganu, has been steadily improving in utilisation and efficiency.

“The group will continue to focus on cost optimisation, operational efficiency and prudent business strategies to strengthen resilience and support sustainable performance in the challenging market environment,” Hiap Teck said.

Hiap Teck’s shares ended Thursday half a sen or 1.92% lower at 25.5 sen, valuing the company at RM445.7 million. 

Year to date, the counter has fallen over 8.93%.