Thursday 28 Mar 2024
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KUALA LUMPUR (May 8): Steel products manufacturer CSC Steel Holdings Bhd swung back to the black with net profit of RM5.4 million in its first financial quarter ended March 31, 2015, after suffering a year of net losses.

In a filing with Bursa Malaysia, CSC announced its quarterly revenue increased 12.6% to RM294.3 million, from RM269.3 million in the previous corresponding quarter. Earnings per share recorded at 1.46 sen attributed to the increase in sales volume and selling price of its products.

According to CSC’s (valuation: 1.8; fundamental: 1.2) financial statements, the group’s pilot bio-coal manufacturing plant had yet to commence commercial production, due to complexity of technical issues.

In its annual report for the financial year ended Dec 31, 2012, CSC said its wholly-owned subsidiary CSC Bio-Coal Sdn Bhd ventured into green technology with the execution of a bio-coal project.

However, in the current quarter’s performance review, CSC pointed out that the technical issues would be undertaken by the research and development team at its Taiwan-based parent company, China Steel Corp.

It said though the first quarter of 2015 has shown improvement over the previous quarter, the overall steel market demand was still not stable.

“Imports from China, Vietnam and other countries remain a threat to local steel manufacturers. It is crucial that the market share of imports for this year and the next few years, be effectively contained,” CSC stated.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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