KUALA LUMPUR (May 25): Malaysia Steel Works (KL) Bhd (Masteel) saw a 25.8% increase in net profit for the first quarter ended March 31, 2018 to RM17.72 million, compared with RM14.08 million a year ago, as it sold more products at higher selling prices.

Revenue grew 24.7% to RM434.8 million, from RM348.72 million in the year-ago first quarter, according to the group's filing with Bursa Malaysia.

The steel player attributed the increase in its revenue and profit to stronger domestic demand and the strengthening of local steel price, which helped boost its selling price and volume sold.

It also booked in a foreign exchange gain amounting to RM5.19 million in the quarter, lifting its bottom line further.

The group said it has seen softened demand for its products in the second quarter, due to the commencement of Ramadan festivities from mid-May, and the announcement of the zerorisation of goods and services tax effective June 1.

It expects demand to improve during the second half of the year.

Meanwhile, new technology packages are being installed at both its facilities at Petaling Jaya and Klang, which Masteel believes will "augur well with the bottom line of the company in the near future".

Shares in Masteel closed up 1.5 sen or 1.96% at 78 sen today, bringing a market capitalisation of RM332.44 million. The stock has declined 38% year-to-date, from RM1.27 on Dec 29, 2017.