Latest news with #LeonFuat
New Straits Times
13-06-2025
- Business
- New Straits Times
Leon Fuat shareholders give nod to proposed dividend, other proposals at AGM
KUALA LUMPUR: Leon Fuat Bhd today says that all resolutions have been duly passed at its 18th annual general meeting (AGM). The manufacturer and trader of rolled long and flat steel products said among the key approvals was the declaration of a final single-tier dividend of one sen per share for the financial year ended December 31, 2024 (FY24). "The dividend will be paid on July 22, 2025 to shareholders registered in the record of depositors as of June 30, 2025," it said. Leon Fuat said shareholders also accepted the company's audited financial statements for FY24, along with the directors and auditors' reports. Approval was granted for the payment of directors' fees and allowances for the period from June 14, 2025 until the next AGM. Executive director Calvin Ooi Shang How said the approval of the dividend reflects the company's commitment to rewarding shareholders, even as it navigates a dynamic operating landscape. As Leon Fuat moved through FY25, Ooi said the company will continue to strengthen its operating fundamentals, manage costs prudently, and adapt to shifting market demands. "With a clear strategy in place and the support of our shareholders and board, we are optimistic in our ability to deliver value and sustain profitability moving forward," he said. Separately, in line with corporate governance practices, shareholders re-elected Datuk Lim Cheng Poh, Datuk Seri Ooi Bin Keong and Ooi Seng Khong as directors. Baker Tilly Monteiro Heng PLT was re-appointed as the company's auditors for FY25, with authority vested in the directors to fix their remuneration. In addition to the ordinary business, Leon Fuat said shareholders also approved several resolutions under special business. These included the renewal of authority for the directors to issue shares under Sections 75 and 76 of the Companies Act 2016 and the proposed renewal of the existing shareholders' mandate for recurrent related party transactions of a revenue or trading nature.
New Straits Times
08-06-2025
- Business
- New Straits Times
Leon Fuat braces for regional steel glut, sharpens edge on pricing and speed
KUALA LUMPUR: Steel processor Leon Fuat Bhd is stepping up cost efficiency and delivery speed as it braces for rising competition in Southeast Asia, with trade diversion risks looming from expanded United States steel tariffs. Executive director Ooi Shang How said the group is actively tracking changes in global trade flows amid concerns that steel products originally bound for the US could flood regional markets instead, pushing prices down and squeezing margins. "Although we do not export directly to the US, the indirect impact from trade diversion is real. An oversupply in Southeast Asia could drive up competition and weigh on prices," he told Business Times. To stay ahead, the company is banking on cost-competitive pricing, swift turnaround, and a widening product range, including larger steel pipes under its ongoing expansion. "We continue to optimise our processes, invest in faster and more efficient cutting technologies, and uphold high quality to offer clients a one-stop, timely solution," said Ooi. He said Leon Fuat's diverse customer base across sectors also cushions it from volatility, allowing strong segments to offset weaker ones. "The steel industry is inherently volatile, so adaptability, efficient inventory management, and transparency, including write-downs when prices fall, are essential to sustaining profitability," he said. Leon Fuat processes and trades various flat and long steel products and manufactures welded pipes, perforated sheets, and expanded metal. Its latest automation upgrades include a fibre laser cutter that performs five times faster than conventional machines. Even in a crowded steel pipe manufacturing market, Ooi believes the group's mix of quality, speed and cost-effectiveness offers a distinct edge. "We recognise how critical project schedules are to clients. Our ability to meet timelines consistently sets us apart," he said. As Leon Fuat prepares for increased competitive pressure in the region, its focus remains on agile operations and expanding its product capabilities to strengthen market share. For the first quarter ended March 31, 2025, Leon Fuat's net profit slumped 83 per cent year-on-year to RM1.4 million from RM8.22 million, weighed down by weaker average selling prices and narrower margins across its steel portfolio. Revenue declined to RM212.52 million from RM225.26 million, dragged by a 15.9 per cent fall in contributions from its steel trading segment to RM64.11 million. The drop was attributed to both lower tonnage and softer selling prices for flat and long carbon steel products. As at end-March, the group held RM25.62 million in cash and bank balances against total borrowings of RM464.68 million. Net assets per share inched up to RM1.74 from RM1.73 as at Dec 31, 2024. On Friday, shares of Leon Fuat closed unchanged at 37 sen, with 22,700 units traded. This gave the company a market capitalisation of RM126.17 million. Year-to-date, the stock has fallen 21.28 per cent from 47 sen on Jan 2.
