KUCHING: Stronger sales of coil products and building materials lifted Asteel Group Bhd’s net profit to RM1.37 million for the second quarter ended June 30, 2026 (2Q2026), nearly four times the RM275,000 recorded a year earlier.
Revenue rose 20 per cent to RM80.67 million from RM67.3 million, driven by higher sales of coil products and increased turnover from building materials.
Earnings per share improved to 0.28 sen from 0.06 sen.
Both of the group’s geographical operations recorded higher revenue during the quarter.
Revenue from East Malaysia rose to RM50 million from RM42.7 million in 2Q2025, while West Malaysia revenue increased to RM30.6 million from RM24.6 million.
The East Malaysia operation manufactures and sells pre-painted and galvanised iron and roll-formed products, trades in hardware and building materials, and undertakes steel truss supply and installation as well as construction and renovation works.
Its West Malaysia operation manufactures and sells roll-formed products, trades in coated and non-coated coils, hardware and building materials, and undertakes steel truss and roofing works.
Quarter-on-quarter, Asteel also recorded stronger results, with net profit rising to RM1.37 million from RM275,000 in 1Q2026, while revenue increased 26 per cent from RM64.2 million to RM80.67 million.
For the first half of 2026 (1H2026), group net profit climbed to RM1.64 million from RM219,000 a year earlier, as revenue increased to RM144.7 million from RM124.8 million.
Looking ahead, Asteel said it remained cautiously optimistic about its prospects for the second half of 2026, supported by ongoing public infrastructure projects and higher private-sector investment in industrial developments and data centres.
“The continued implementation of public infrastructure projects, together with higher private sector investments in industrial development and data centres, is expected to provide better demand for the group’s coil, sheet, structural steel, building material and roofing products,” it said.
In Sarawak, the group expects construction activities to remain active, supported by state development initiatives and infrastructure investments, including the autonomous rapid transit (ART) project.
However, Asteel cautioned that the operating environment remained challenging due to geopolitical uncertainties, volatile steel prices, foreign exchange fluctuations and elevated operating costs.
It said that while global shipping conditions had gradually improved following earlier disruptions caused by geopolitical tensions in the Middle East, freight rates and raw material costs remained volatile.
“The group will continue to closely monitor market conditions and proactively manage its procurement, inventory and pricing strategies to mitigate cost pressures, safeguard margins and ensure a stable supply of products to meet customers’ requirements,” it said.
Barring unforeseen circumstances, the board is confident that the group will deliver a satisfactory performance in the second half of the year.
Separately, Asteel said subsidiary Asteel (Sarawak) Sdn Bhd (ASWK) had received claims totalling RM7.7 million, including accrued interest, in three of four adjudication cases involving Dynaciate Engineering Sdn Bhd.
ASWK had initiated four adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 against Dynaciate over outstanding payments for work carried out for the Sarawak Methanol project in Bintulu.
Dynaciate had engaged ASWK in 2022 under three sub-contract agreements covering steel structure erection, equipment and above-ground piping erection, as well as roofing and cladding installation works.
In the fourth case, following the adjudicator’s dismissal of its claim, ASWK filed an application with the High Court on Feb 6, 2026 to set aside the adjudication decision.
The High Court dismissed the application on July 28.
“ASWK will continue to evaluate and pursue other available avenues to recover the outstanding amount,” Asteel said, without disclosing the amount involved.
Meanwhile, Asteel said it allotted 25.16 million ordinary shares to Nippon Steel Corporation on June 26 following the conversion of the latter’s entire 21.73 million redeemable convertible preference shares (RCPS).
The RCPS were converted at 51.82 sen each.
Asteel executive chairman Tan Sri Soh Thian Lai recently acquired about 5.51 million shares at seven sen apiece for RM360,954 through a direct business deal and received another 536,600 shares transferred by his spouse, Puan Sri Ng Mooi Cheng.
Following the transactions, Soh emerged as a substantial shareholder with about 30.16 million shares, representing a 5.914 per cent stake in Asteel.
Group managing director Dato Sri Victor Hii Lu Thian also raised his stake after purchasing 20 million shares at seven sen each for RM1.4 million through a direct business deal.
He now holds about 125.68 million shares, equivalent to a 24.641 per cent stake.
Asteel shares opened unchanged at 7.5 sen yesterday. The company has about 510 million shares in issue.
