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Revenues reached 307.46 million ringgit ($88.4 million) in the quarter as a result of higher sales volume in its trading division, it said in a filing with the country’s stock exchange, Bursa Malaysia, on Wednesday December 17.
“Despite a significant increase in sales volume – 48% higher than in the first quarter of [financial year] 2014 – trading revenue only grew by 35% to 173.28 million ringgit ($49.8 million), due to lower average selling prices arising from keen competition,” the company said.
Its manufacturing division reported a drop in revenue, at 146.95 million ringgit ($42.3 million), compared with 148.77 million ringgit ($42.8 million) in the previous year.
Gross profit in the whole group increased to 24.14 million ringgit ($6.9 million) from 21.7 million ringgit ($6.2 million), but its pre-tax profit fell to 4.99 million ringgit ($1.4 million) from 17.09 million ringgit ($4.9 million) mainly due to foreign exchange losses at some of its subsidiaries, Hiap Teck said.
The group controls several companies. It has a 100% stake in steel pipe producer Alpine Pipe Manufacturing as well as steel trading firm Hiap Teck Hardware.
Its products include steel pipe, hollow section and plate.
Hiap Teck also owns 55% of Eastern Steel, a joint venture with China’s Shougang Group that is expected to commission a 1.5-million-tpy integrated steel mill in Kemaman in the Malaysian state of Terengganu next year.
Malaysia’s steel producer Hiap Teck Venture Berhad posted a 13.7% year-on-year increase in revenues in the July-September period, the first quarter of its 2015 financial year.