PETALING JAYA: Tashin Holdings Bhd’s net profit for its first quarter ended March 31, 2021 surged 16-fold to RM12.23 million from RM724,000 reported in the same quarter of the previous year on higher demand for its steel products and selling price.
Revenue for the period improved to RM95.22 million, a 55.2% gain from RM61.35 million reported previously.
Its managing director Lim Choon Teik elaborated that the strong performance was attributed to its slit coils/steel sheets as well as manufactured products such as steel pipes, flat and square bars, expanded metals and checkered plates.
“Tashin experienced improved sales for its steel products and profit margin during Q1’21 as the economy saw a gradual return to normalisation while business sentiments improved after one year of the Covid-19 pandemic,” he said in a statement.
“Barring unforeseen circumstances, the board is cautiously optimistic its prospects for the coming quarter would remain positive and satisfactory due to higher demand in the steel processing segment and steel pipes and increased sales order from the automotive segment.”
However, the group is cognisance of the shortage of certain types of steel material such as cold rolled materials that may post a challenge to its operations and an interruption in the supply chain.