MELEWAR 3778 Share Price

The Group ended the year with a net loss of RM16.89 million as compared to a net profit of RM48.16 million the prior year. primarily driven by the Cold Rolled Coil segment’s weaker performance. The sharply lower average steel selling price for both the Steel Tube and Cold Rolled Coil segments also played a role in the revenue decline. The Group’s scheduled expansion program for its container storage business in the UK, which was initially planned for the prior year, has been rescheduled to commence in FY2024 due to the prevailing economic challenges.

The Group’s revenue for the current first financial quarter declined by 30% to RM121.6 million, as compared to the immediate-preceding quarter, mainly owing to lower sales volume and average unit selling price (in tandem with lower steel prices) for both the Cold Rolled Coil and Steel Tube segments. the Group registered a 12% lower pre-tax profit of RM2.2 million for the current financial quarter compared with the immediate-preceding quarter’s pre-tax profit of RM2.5 million

The Group registered a significant lower pre-tax profit of RM5.9 million (down by 66%), compared with the immediate-preceding quarter’s pre-tax profit of RM17.2 million. The steel market condition in the current financial quarter had deteriorated compared to 3rd quarter, as steel prices began to decline from April onwards with business sentiment and demand turned weaker due to raging inflation, rate hikes, labor shortage, and capital reverse-flows

The Group’s revenue for current quarter at RM253.6 million was around 71% higher than the immediate-preceding quarter at RM148.2 million, as sales volume rebounded by around 52% for the steel segments from the immediate-preceding quarter’s shortened operational days due to the Pandemic shutdown. There was also higher revenue contribution from the Food Trading businesses for the current financial quarter of RM3.1 million as against the immediate-preceding quarter’s revenue of RM1.7 million. As a result, the Group registered a higher pre-tax profit of RM30.8 million for the current financial quarter

The Group registered a weaker pre-tax profit of RM16.6 million for the current financial quarter compared to the pre-tax profit of RM25.4 million in the immediate preceding quarter. The lower pre-tax profit for the current quarter is mainly due to a pre-tax loss of RM4.6 million for the month of June 2021 attributed to the FMCO shutdown.

Steel-related counters on Bursa Malaysia began the week with further big gains after the government announced the second round of anti-dumping duties on foreign steel products in less than a week. A quick check on the stock exchange’s list of most active counters showed that many steel players appeared among the top 30 stocks. Yesterday, Melewar Industrial Group Bhd surged by 74.63% to 58.5 sen.

The Group’s revenue for the current quarter at RM92.7 million is 37% significantly lower compared to the preceding quarter’s at RM146 million. The lower revenue is mainly due to the longer business shutdown, which led to lower sales volume for both the Cold Rolled and Steel Tube segments. The lower taxes arising from Cold Rolled’s write back of deferred tax assets has resulted in a higher after-tax profit for the Group at RM2.3 million compared to thepreceding quarter after-tax loss at RM3.6 million.

In Financial Year End 2019, the directors’ remuneration was 6.39 million. It was fair compared to average in listed companies, considering the employees’ remuneration of 38.8 million and auditor’s remuneration of 642 thousands