Malaysia Smelting hits record as tin rally lifts profit fivefold

KUALA LUMPUR: Shares of Malaysia Smelting Corp Bhd surged to a record high today after the tin producer posted a more than five-fold jump in first-quarter earnings, driven by firmer tin prices and stronger contributions from its mining and smelting businesses.

The counter rose as much as 9.0 sen, or over 4.0 per cent, to an all-time high of RM2.27 in early trade, its strongest level since listing more than three decades ago, as investors cheered the group’s robust financial performance and generous dividend payout.

The producer of tin metal and tin-based products was also among Bursa Malaysia’s stronger-performing commodity-linked counters this year.

The stock has gained about 38 per cent year-to-date and rose 81 per cent over the past 12 months, supported by strengthening tin prices and expectations of sustained earnings momentum.

Global tin prices have rallied sharply this year, rising 32 per cent to about US$53,900 (RM213,237) per tonne on the London Metal Exchange (LME), amid renewed concerns over tightening supply of the industrial metal.

Tin is a critical material used across multiple industries, including semiconductors, electronics, soldering materials, renewable energy systems, and food packaging, making supply dynamics closely watched by manufacturers and investors.

According to Public Investment Bank, the outlook for the tin market remains positive, with prices expected to stay elevated amid a looming supply deficit.

Malaysia Smelting Corp’s net profit for the first quarter ended March 31, 2026 (Q2 FY26), leaped to RM42.93 million from RM7.72 million in the same quarter last year amid firmer tin prices and improved margins.

Revenue rose to RM457.03 million from RM369.77 million previously due to a higher average tin price of RM193,100 per tonne compared with RM142,000 a year earlier as well as higher sales of tin-bearing intermediates, despite a lower sales quantity of refined tin in Q1 FY26.

The tin smelting segment recorded a pre-tax profit of RM15.5 million in the quarter under review compared with RM5.7 million in Q1 FY25. The better performance was mainly due to higher profit from encashment of tin intermediates, contributed by a higher tin price and higher margin, despite lower tin encashment quantity.

Performance was also better partially due to cost savings from the closure of the Butterworth plant, the group said in a bourse filing last week.

The group’s tin mining division remained the key earnings driver, posting a pre-tax profit of RM55.2 million compared with RM29.3 million a year earlier, supported by higher tin production volumes and favourable market prices.

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المصدر: New Straits Times