lease: Tashin Holdings Bhd’s net profit for the first quarter ended March 31, 2021 increased 16-fold to 12.23 million MYR from 724,000 MYR reported in the same quarter of the previous year due to higher demand for steel products and the selling price.
Revenue for the period improved to RM95.22 million, an increase of 55.2% from the previously reported RM 61.35 million.
Its managing director Lim Chun Tech explained that the strong performance is attributable to slotting coils / steel sheets as well as manufactured products such as steel tubes, flat and square bars, expanded metals and square sheets.
“Tachin saw an improvement in sales of steel products and a profit margin during the first quarter of Year 21 as the economy witnessed a gradual return to normalization while business sentiment improved one year after the Covid-19 pandemic,” he said in a statement.
“Barring unforeseen circumstances, the board is cautiously optimistic that its outlook for the next quarter will remain positive and satisfactory due to increased demand in the steel processing and steel piping sector and increased sales orders from the automotive sector.”
However, the group is aware of the shortage of certain types of steel materials such as cold rolled materials which may pose a challenge to its operations and a disruption in the supply chain.