Based on CSC Steel Holdings Berhad’s Q2 2025 results, yes — the performance does show that the counter is back on track compared to the previous year, though challenges remain. Here’s a breakdown:

? Financial Performance

Revenue: RM363.5m in Q2 2025 vs RM366.0m in Q2 2024 (slightly lower, –1%).

Profit before tax: RM22.8m in Q2 2025 vs RM9.2m in Q2 2024 (+148%).

Profit after tax: RM17.8m in Q2 2025 vs RM7.2m in Q2 2024 (+147%).

Earnings per share: 4.81 sen in Q2 2025 vs 1.95 sen in Q2 2024.

Even though revenue dipped, profit margins improved significantly due to lower raw material costs and a stronger Ringgit against USD, which reduced import costs
.

? Trend vs Previous Quarter

Revenue increased 11% quarter-on-quarter (Q2 vs Q1 2025).

Profit before tax improved 43% QoQ (RM22.8m vs RM15.9m).

Profit after tax up 41% QoQ (RM17.8m vs RM12.6m)
.

This shows the company is regaining momentum and executing better operationally.

? Outlook

Challenges: global steel overcapacity, weak China demand, US tariffs, rising domestic costs (tariffs, SST, EPF, fuel subsidies).

Positives: Malaysian anti-dumping policies, cost control, efficiency, stronger Ringgit.

The company remains “cautiously optimistic” and is prioritising financial resilience
.

✅ Conclusion:
Yes — the steel counter is showing a strong recovery from previous losses/weak quarters. Despite slightly lower revenue, profitability is sharply up year-on-year and quarter-on-quarter. This suggests the company is back on track operationally, but external risks (global overcapacity, tariffs, domestic cost pressures) still need to be managed.

China is grappling with overcapacity in its petrochemical industry. According to Bloomberg, the government is preparing a reform package to phase out small-scale, inefficient facilities, upgrade aging plants, and shift investments toward higher-value advanced materials. The plan may be disclosed as soon as next month, pending final confirmation from the Ministry of Industry and Information Technology.

Back in 2015, China initiated a major steel production cut, and as a result, Ann Joo Resources surged from RM0.62 to RM3.70 over the following years.

Now in 2025, history seems to be repeating itself — China has once again started reducing steel output, leading to a steady rise in Rebar futures. On top of that, the massive Yarlung Tsangpo hydropower project — with a total investment of RMB 1.2 trillion — is set to drive substantial demand for steel in infrastructure like dams, tunnels, and power stations.

With both supply tightening and demand heating up, the steel sector could be entering another bullish cycle. This rally might just be one to watch closely.

Good news!!! China started to reduce production of steel + this mega Hydropower project. Rebar price rising & no more anti dumping from China.

Engine started. NASDAQ Global Chemicals Index keep rising. China started to reduce production on chemical,steel & etc.

Engine started. NASDAQ Global Chemicals Index keep rising. China going to reduce production on chemical.

Yarlung Tsangpo Hydropower Project Launched, Driving Steel Demand and Market Surge
On July 19, the Yarlung Tsangpo River Lower Reach Hydropower Project officially began construction in Nyingchi, Tibet. The massive project involves five cascading hydropower stations, with a total investment of RMB 1.2 trillion and 5 million tons of steel required. Rebar price in China up 10% since June 2025

Yarlung Tsangpo Hydropower Project Launched, Driving Steel Demand and Market Surge
On July 19, the Yarlung Tsangpo River Lower Reach Hydropower Project officially began construction in Nyingchi, Tibet. The massive project involves five cascading hydropower stations, with a total investment of RMB 1.2 trillion and 5 million tons of steel required. Rebar price in China up 10% since June 2025

Sell in May and go all in JCY!!

RM1.5..........