CSC Steel's FY21 profit more than doubled

Taiwanese steel maker CSC Steel Holdings Bhd more than doubled net income to RM86.09 million for the fiscal year ended December 31, 2021 (FY 2021) from RM37.0 million in the prior year, driven by improved product margins due to upward trend in selling prices.

The coiled steel maker said that revenue also increased to RM1.47 billion from RM1.08 billion earlier, mainly due to a significant increase in steel prices.

"The group's total revenue increased by 27%, or RM394 million, although sales fell by 7% to 365,000 metric tons from 394,000 metric tons a year earlier," Bursa Malaysia said in a statement on Monday ( February 21). .

In the fourth quarter, the group's net income jumped to RM38.86 million from RM21.43 million a year earlier, while revenue increased to RM532.35 million from RM367.53 million earlier.

CSC Steel has proposed a final flat dividend of 14 sen per share for FY 2021 (FY 2020: seven sen) for shareholder approval.

The group said construction activity will gradually pick up after the Chinese New Year in 2022 as a result of the gradual easing of restrictions on real estate in China.

In addition, China's capital injection into the financial market will help stabilize steel prices in the region, the report said.

However, he noted that the Omicron option could pose a potential threat, causing short-term disruptions to the international supply chain and slowing consumption of domestic steel stocks.

“Due to labor shortages and fluctuations in global steel prices, domestic market sentiment remains in watch mode with a weak and volatile trend forecast. In conclusion, the group will continue to be resilient amid the current and upcoming uncertainties.