KUALA LUMPUR (May 3): Steel processor and manufacturer Tashin Holdings Bhd’s net profit for the first quarter ended March 31, 2021 (1QFY21) surged 16-fold to RM12.23 million from RM724,000 a year earlier, on higher demand for its steel products as well as selling price.

Its quarterly revenue for 1QFY21 jumped 55.2% to RM95.22 million from RM61.35 million a year ago, its filing to Bursa Malaysia showed. Earnings per share rose to 3.51 sen from 0.21 sen. The group did not declare any dividend for the latest quarter.

In a statement, Tashin's managing director Lim Choon Teik attributed the strong earnings and revenue growth to higher demand for the group's slit coils/steel sheets, steel pipes, flat and square bars, expanded metals and checkered plates — which are used in steel processing and manufacturing of steel products.

The group experienced improved sales and profit margin during 1QFY21 as the economy saw a gradual return to normalisation while business sentiments improved after one year of the Covid-19 pandemic, he said.

Lim also said Tashin is positive about its prospects as the economic recovery picks up, lifting demand from the steel processing segment and steel pipes, with increased sales order from the automotive segment.

However, he noted there is a shortage of certain types of steel material such as cold-rolled materials, which may cause an interruption in the supply chain and pose a challenge to Tashin's operations.

Tashin shares closed three sen or 3.59% lower at 80.5 sen today, valuing the group at RM291.4 million.