HIAPTEK (5072): HIAP TECK VENTURE BHD returns to the black in its first quarter
KUALA LUMPUR: Integrated steel player, Hiap Teck Venture Bhd has a strong start to its financial year ending July 31,2021, swinging back to profit in the first quarter.
The group posted a net profit of RM6.96mil for the three months ended Oct 31 (Q1’2021) compared with net loss of RM3.26mil in the corresponding quarter a year ago.
In its filing with Bursa Malaysia, the company said this was due to a joint venture entity which posted a profit of RM3.87mil for the quarter.
However, Hiap Teck’s revenue fell 20.1% to RM231.44mil compared with RM289.79mil a year ago dragged by lower sales as the construction sector grappled to return to normal following implementation of the movement control order (MCO).
Meanwhile, both the group’s trading and manufacturing divisions recorded a decline in revenue of 29% and 19% to RM93.77mil and RM131.73mil respectively compared with a year ago.
Although the local steel demand dropped in the first half of this year due to MCO, Hiap Teck expected the demand to improve in the second half as most business activities resumed operations in May.
Moving forward, Hiap Teck’s strategy is to “remain focus and enforce strict cost discipline and to continuously enhance operational efficiency to sustain profitability while observing the stringent Covid-19 standard operating procedures.
“This will ensure that the group emerge stronger from the crisis to take advantage of any opportunity that may arise when the economy recovers, ” it said in the filing with the stock exchange.