Kinsteel Q407

FY07 fuelled by stronger steel prices

Comment on Results

Kinsteel's 4Q07 net profit grew 82% y-o-y to RM37.8m driven by stronger steel prices. This brought YTD net profit (ex EI) to RM135.3m, an improvement of >100% y-o-y. 4Q07 revenue grew 58% y-o-y on higher sales volume.

Q-o-q, 4Q07 net profit fell 7% due to higher tax of RM2.0m in the quarter
(3Q07: RM0.4m). Effective tax rate for FY07, however, was lower than the
statutory rate due to utilization of capital allowances.