KUALA LUMPUR (Nov 23): Lion Industries Corp Bhd posted a net profit of RM27.79 million in its first quarter ended Sept 30, 2017 (1QFY18) against a net loss of RM2.52 million, due to an improved performance in its steel division.

The company, controlled by Tan Sri William Cheng Heng Jem, saw its revenue for 1QFY18 grew 24% to RM637.31 million from RM514.17 million in 1QFY17, on higher revenue registered for its steel and building materials division.

The higher revenue from its steel division was due to the favourable market condition following the imposition of safeguard duties and the reduced steel export by China.

Its building materials division recorded a 40% higher revenue of RM78.7 million compared to RM56.1 million in the same period last year due to the higher demand from the property sector.

Meanwhile, its property development division registered a lower revenue of RM5.3 million compared to RM20.2 million in the same period last year as most of the group's major property projects were completed in the last financial year.

As for its prospects, the group said the operating environment for the steel business for the next quarter is expected to remain positive in view of lower imports and gradual increase in domestic demand for steel products from the present increased implementation of infrastructure projects in the country.

"Nonetheless, the group will stay vigilant and responsive to market changes and steadfastly continue with its efforts to improve operating performance for the next quarter," it said.

In a separate filing to the local bourse today, Lion Industries announced the appointment of Serena Cheng Hui Ya as a non-independent and non-executive director in Lion Industries.

Serena, 31, is the daughter of William and the cousin of Tan Sri Albert Cheng Yong Kim, who is the managing director of Lion Industries.

Lion Industries shares closed up 7 sen or 4.5% today to RM1.61 and for a market capitalisation of RM1.1 billion.