KUALA LUMPUR (Feb 22): CSC Steel Holdings Bhd recorded a net profit of RM10.49 million for its fourth quarter ended Dec 31, 2023 (4QFY2023), compared with a net loss of RM347,000 in the corresponding quarter a year before that, as revenue grew.

The group recorded earnings per share of 2.84 sen for 4QFY2023, as opposed to a loss per share of 0.09 sen previously. Revenue grew 4.4% to RM376.56 million from RM360.72 million, its bourse filing showed.

For the full FY2023, the group made a net profit of RM49.48 million, over three times the RM14.61 million it logged in FY2022, despite slightly weaker annual revenue, thanks largely to lower costs.

Annual revenue dropped 8.22% to RM1.56 billion from RM1.7 billion previously, as steel prices normalised from elevated levels back in FY2022, according to the flat steel products maker. 

“[The higher earnings despite lower revenue] stemmed from effective cost optimisation strategies, including leveraging economies of scale, leading to improved profit margins,” the group said.

It proposed to pay a final dividend of 9.4 sen for FY2023 at a date to be fixed upon gaining shareholders' approval. It paid a final dividend of three sen per share in FY2022.

Looking ahead, CSC Steel said the ongoing revival of the global economy and surge in infrastructure construction projects has led to the global steel market exhibiting promising signs of recovery, while the Malaysian steel industry has remained resilient as domestic construction projects gradually regain momentum.

“Nevertheless, the market faces persistent challenges, including surplus production capacity and environmental considerations,” it added.

“The group, buoyed by government trade initiatives and protective measures, is committed to proactively addressing potential risks and challenges with unwavering prudence and pragmatism,” the group added.

Shares in CSC Steel closed one sen or 0.81% higher at RM1.25, valuing the steel products maker at RM475 million.