KUCHING: Asteel Group Bhd has returned to profitability in the second quarter ended June 30, 2025 (2Q2025), posting a net profit of RM275,000 compared with a net loss of RM1.63 million in 2Q2024.
Group revenue rose 25 per cent to RM67.3 million from RM53.96 million a year earlier, while earnings per share stood at 0.06 sen against a loss per share of 0.34 sen previously.
East Malaysian operations remained the main revenue contributor, generating RM42.66 million (2Q2024: RM40.13 million), followed by West Malaysian operations with RM24.62 million (RM13.83 million).
The former manufactures and sells pre-painted and galvanised iron products, roll-formed items, and trades hardware and building materials, while the latter focuses on roll-formed products and coil trading.
Asteel attributed the revenue growth to higher project income and increased trading of building materials. Improved gross profit margins from project-related revenue also supported the return to the black.
The results also marked an improvement from the immediate preceding quarter (1Q2025), when revenue was RM57.54 million and the group recorded a net loss of RM56,000. “The revenue growth was primarily driven by higher contributions from project-related income and trading products. Despite the increase in revenue, the group’s gross profit margin declined, resulting in only a marginal rise in profit before interest and tax. However, lower interest expenses and higher interest income lifted profit before tax to RM0.73 million from RM0.25 million in the previous quarter,” Asteel said in its results commentary.
For the first half of 2025 (6M2025), Asteel posted a net profit of RM219,000 versus a net loss of RM2.56 million a year ago, with revenue rising to RM124.8 million from RM114.9 million.
Looking ahead, the group said Malaysia’s economic outlook for the second half remains clouded by ongoing global trade tensions, particularly the impact of reciprocal tariffs initiated by the US administration, which are disrupting supply chains and dampening market sentiment.
Nonetheless, steady progress in domestic infrastructure projects, coupled with sustained foreign and local investment in construction, manufacturing and data centres, is expected to support Asteel’s core business. The group remains cautiously optimistic on demand for roofing and building materials in East Malaysia and sees growth potential in Peninsular Malaysia, especially from manufacturing and data centre investments in Selangor and Johor.
Asteel said fluctuations in raw material prices, rising input costs and competitive pricing remain challenges, but the group will focus on operational agility, cost discipline and supply chain management to mitigate risks and sustain long-term performance.
