KUCHING: Asteel Group Bhd is upbeat about its performance this year, spurred Economic by rising demand for roofing and building materials in infrastructure and housing projects.
Asteel has signalled out Sarawak and the Johore-Singapore Special Zone in Johore as the states that would benefit from the higher demand for roofing and building materials, which the company is a supplier.
“Our subsidiary’s participating in roofing and cladding works on a data centre project will contribute positively to the group,” said Asteel when commenting on the prospects for 2025 as it released its yearly financial results.
In financial year ended December 31, 2024 (FY2024), Asteel had reduced its group net loss to RM2.27 million from RM6.8 million in FY2023 despite a lower revenue of RM247.9 million against RM253.3 million recorded in 2023.
The company’s losses per share dropped to 0.47sen from 1.4sen.
In 4Q2024, Asteel returned to the black with group net profit of RM521,000 (4Q2023: -RM3.37 million) as revenue declined marginally to RM68.44 million (RM69 million).
The East Malaysia operation contributed RM48.1 million and west Malaysia chipped in RM20.97 million to group revenue.
The East Malaysia operation is involved in the manufacture and sale of pre-painted, galvanised iron, roll-formed products and trading in hardware and building materials while the West Malaysia operation in engaged in the manufacture and sales of roll-formed products, trading of coated and non-coated coils, hardware and building materials.
Asteel said the group recorded higher revenue from the sales of coils and sheets in the current quarter under review but project revenue declined as compared to the same period in 2023.
“The profit recorded in 4Q2024 was contributed by improved gross margin as a result of higher sales quantity, lower input cost and stronger ringgit,” it added in explanatory notes to its financial results.
The 4Q2024 performance bettered that of the immediate preceding quarter (3Q2024) when the group posted net loss of RM233,000 on revenue of RM64.6 million.
Quarter-on-quarter, the group revenue climbed by RM3.8 million (6%) to RM68.44 million, mainly contributed by increased sales from coils and sheets products and project revenue.
“In addition to the higher revenue, gross profit margin also improved, resulted in higher operating profit and profit before tax.
Profit before tax for the current quarter was RM2.55 million as compared to profit before tax of RM0.71 million in the previous quarter.”
On prospects for 2025, Asteel said it anticipates steady growth this year, steered by rising demand for roofing and building materials, particularly in Sarawak and Johore.
“Malaysia is expected to have continued economic growth in 2025, especially in the construction and manufacturing sectors.
This is mainly driven by the increase in foreign and domestic direct investments into infrastructure development, hi-tech industrial parks and data centres.
“Despite opportunities, there are prevailing challenges, such as market competition, rising labour cost, global trade policies and regulatory changes. The group is mitigating these challenges by forming strategic partnership, adopting technology, implementing efficient inventory management, ensuring steady supply and establishing proper cost control.
“Asteel is marching forward in strengthening its market position. The group continues to improve customer engagement, enhance operational efficiency and leverage innovation. Asteel anticipates better performance in 2025,” added the company.
