KUALA LUMPUR (Nov 26): Shares in steel product and equipment maker Prestar Resources Bhd rose to their highest in three months this morning after the company's net profit for the third quarter ended Sept 30, 2020 (3QFY20) rose more than twofold to RM5.23 million, from RM2.25 million a year earlier, driven by higher steel prices and a positive contribution from its steel pipe, guard rail and racking division.

At 10.05am, Prestar had risen 7.14% or 4.5 sen to 67.5 sen, valuing the stock at RM138.26 million.

In a bourse filing yesterday, Prestar said revenue for the quarter increased 7.5% to RM125.92 million, from RM117.13 million a year ago, due to higher demand for steel pipes and related products.

Earnings per share (EPS) were 2.7 sen versus 1.15 sen previously.

For the nine months ended Sept 30, 2020 (9MFY20), Prestar’s net profit jumped to RM6.41 million, from RM2.41 million, on the back of a revenue of RM272.93 million against RM342.39 million a year earlier.

Prestar said the lower revenue for the cumulative period was due to a temporary slowdown in the company’s sales in April and May due to the movement control order (MCO).