PETALING
JAYA: Pantech Group Holdings Bhd is
looking to de-merge its stainless steel and carbon steel pipe manufacturing
subsidiaries for an eventual listing on the Main Market.
In a filing with Bursa Malaysia,
it said Pantech Stainless & Alloy Industries Sdn Bhd and Pantech Steel
Industries Sdn Bhd may be listed via a special-purpose vehicle.
“The board wishes to highlight
that the proposed listing is still in its preliminary stage, where extensive
preparatory work is required to be carried out. The details in relation to the
proposed listing have yet to be determined at this stage,” it said.
This was announced on the same
day Pantech reported a sharp contraction in its manufacturing segment’s profits
for the financial year ended Feb 29, 2024 (FY24).
It dragged down the group’s
full-year net profit by 9% year-on-year (y-o-y) to RM105.3mil, despite stronger
contribution from the trading segment.
Revenue for FY24 also fell by
nearly 9% on-year to RM946.3mil.
The trading segment’s bottom line
benefited from higher deliveries to local oil and gas sector and better product
mix, while the manufacturing segment was affected by lower demand for stainless
steel products and reduced average selling prices.
espite the softer full-year
results, Pantech’s fourth-quarter financial performance was more positive.
The net profit for the December
2023 to February 2024 period jumped by nearly 22% y-o-y to RM28.74mil.
This was achieved on the back of
stronger bottom line contribution from the trading segment, although partially
offset by a sharp contraction in the manufacturing segment and the losses in
the investment and management segment.
Revenue increased by 16.5% y-o-y
to RM229.75mil.