KUALA LUMPUR (Sept 27):  Hiap Teck Venture Bhd has reported a net profit of RM29.56 million for its fourth quarter, compared to a net loss of RM19.98 million a year ago, on the back of profit contribution from a joint venture (JV).

The group posted earnings per share of (EPS) of 2.21 sen for the quarter ended July 31, 2019, against a loss per share of 1.5 sen previously.

However, quarterly revenue declined 4.75% to RM309.88 million from RM325.32 million.

The group declared a first and final dividend of 0.5 sen.

In a filing with Bursa Malaysia, Hiap Teck blamed the lower revenue on lower sales from its manufacturing segment, following lower steel prices.

Meanwhile, the increase in quarterly net profit was attributed to an RM18.08 million share in profit from a JV, from an RM42.35 million share of loss posted last year.

“The main contributor to the profit of JV entity was due to a reversal of impairment loss of RM50 million which was provided previously. This reversal of impairment loss was done subsequent to annual impairment assessment performed by external auditors,” the group said.

For the full financial year, Hiap Teck’s net profit declined 9.46% to RM25.3 million, from RM27.95 million in the previous year. Earnings per share dropped to 1.89 sen from 2.12 sen.

Full-year revenue increased by 5.21% to RM1.19 billion from RM1.13 billion.

“The group is cautiously optimistic on the local steel demand growth, as the industry is working closely with the Government in reviewing and formulating new policies and incentives that will drive the iron and steel industry forward,” the group said.

Hiap Teck said it is committed to continuous enhancement on efficiency, productivity and technical competency and further expansion of its products range.

It will also focus on procurement and pricing strategies to uphold its leadership in the sector, it said.

Hiap Teck’s share price closed half a sen or 2.63% higher at 19.5 sen today — with 2.01 million shares transacted — giving the group a market capitalisation of RM262.12 million.