KUALA LUMPUR (June 28): Hiap Teck Venture Bhd's net profit dropped 55.35% to RM15.03 million for its third quarter ended April 30, 2023 (3QFY2023), from RM32.21 million a year earlier, as the steel producer recognised a lower profit margin from its downstream operating subsidiaries due to lower prices.

Additionally, there was a share of loss from a joint venture entity of RM1.46 million — mainly due to an adverse foreign exchange translation impact — versus a share of profit of RM3.32 million in 3QFY2022, the group said in a bourse filing.

Earnings per share fell to 0.86 sen from 1.85 sen.

Hiap Teck said quarterly revenue declined 18.37% to RM373.03 million, from RM456.95 million in 3QFY2022, primarily due to lower average selling prices and sales volumes.

For the first nine months of FY2023, Hiap Teck slipped into the red with a net loss of RM11.69 million, from a net profit of RM131.54 million, as revenue fell 5.46% to RM1.13 billion from RM1.2 billion.

Going forward, the group said it will continue to implement prudent procurement strategies and effective inventory management to optimise financial performance and maintain balance sheet strength against the backdrop of a challenging business environment.

“Given the recent correction in steel prices and the weakening of the ringgit against the major currencies, management remains cautious of the group's performance in the coming quarter,” it added.

Hiap Teck’s share price settled half a sen or 1.64% higher at 31 sen on Wednesday (June 28), giving the group a market value of RM541.79 million.