Malaysia Smelting hits all-time high after Q1 profit soars 456%

PETALING JAYA: Malaysia Smelting Corp Bhd (MSC) shares hit a record high today after its first-quarter net profit surged more than five-fold, driven by soaring tin prices that boosted its tin mining and smelting businesses.

Its shares rose as much as 9 sen or over 4% to RM2.27, a new all-time high since its listing over 30 years ago. However, it gave up all its gains by the mid-day break when it traded 1 sen lower at RM2.17, valuing it at RM1.82 billion. A total of 3.3 million shares changed hands.

However, the stock is still up 38% year to date and a massive 81% over the past one year.

In its exchange filing last Friday, MSC said its net profit for the first quarter ended March 31 (Q1 FY2026) surged 456% to RM42.93 million from RM7.72 million a year ago while revenue grew 23.6% to RM457.04 million from RM369.77 million.

MSC said the sterling performance was due to a higher average tin price of RM193,100 per tonne, a 36% rise from RM142,000 per tonne a year earlier, and higher sales of tin-bearing intermediates.

The group declared a special single-tier dividend of 4 sen per share amounting to RM33.60 million, payable on June 26.

MSC’s tin smelting segment posted a 172% higher profit before tax (PBT) of RM15.5 million in Q1 from RM5.7 million a year earlier, supported by higher margins from tin intermediates and cost savings following the closure of its Butterworth smelter plant.

Its tin mining segment’s PBT jumped 88% to RM55.2 million from RM29.3 million, underpinned by higher production volume and favourable tin prices.

Tin prices have surged 32% so far this year to US$53,900 (RM213,237) per tonne on the London Metal Exchange amid resurgent worries over tightening supply of the metal used in everything from circuit boards to food packaging.

Apart from shipping disruption due to the Middle East conflict, tin is also facing supply constraints following a crackdown on illegal mines in Indonesia, the world’s biggest exporter of tin.

Apex Securities said MSC should continue to benefit from firmer tin prices, improved ore visibility and operational efficiencies following the consolidation of smelting operations at Pulau Indah, Selangor.

The company’s prospects remain bright as resilient demand from semiconductors, electronics, and clean energy continues to exceed supply, said Apex Securities and Public Investment Bank (PublicInvest), which both have “buy” calls on the stock.

“Outlook for the tin market remains positive, with prices expected to stay elevated amid a looming supply deficit,” said PublicInvest in a note today.

Listed on Bursa Malaysia and the Singapore Exchange, MSC is one of the world’s largest producers of tin and tin-based products, and a global leader in custom tin smelting since 1887. It is a subsidiary of The Straits Trading Company Ltd of Singapore.

المصدر: Free Malaysia Today