SHAH ALAM, 29 MAY 2026 – LEON FUAT BERHAD (“Leon Fuat” or the “Group”), a manufacturer and trader of steel products specialising in rolled long and flat steel, reported a stronger start to the financial year ending 31 December 2026 (“FY2026”), with significantly improved profitability for the first quarter ended 31 March 2026 (“Q1 FY2026”).
For Q1 FY2026, the Group recorded revenue of RM214.84 million, representing a marginal increase of 1.1% compared to RM212.52 million in the preceding year corresponding quarter (“Q1 FY2025”). Revenue remained broadly stable as the Group continued to derive its sales from its core trading and processing of steel products, which collectively contributed approximately 100.0% of total revenue during the quarter.
The trading segment contributed RM76.45 million or 35.6% of total revenue, while the processing segment remained the larger contributor with RM138.36 million or 64.4% of total revenue. This reflects the Group’s continued reliance on its integrated steel trading and value-added processing capabilities, serving customers across a wide range of industries.
Gross profit increased by 23.3% to RM24.09 million from RM19.54 million in Q1 FY2025, supported by an improvement in overall gross profit margin to 11.2% from 9.2% previously. The stronger margin performance was the key driver behind the Group’s earnings improvement during the quarter.
As a result, profit before tax (“PBT”) surged by 195.2% to RM5.51 million compared to RM1.87 million in Q1 FY2025, while profit after tax (“PAT”) increased by 189.1% to RM4.05 million from RM1.40 million previously. Earnings per share strengthened to 1.19 sen compared to 0.41 sen in the preceding year corresponding quarter.
Compared with the immediate preceding quarter ended 31 December 2025 (“Q4 FY2025”), revenue was broadly stable at RM214.84 million versus RM217.81 million. However, gross profit improved by 28.1% to RM24.09 million from RM18.81 million, mainly due to higher overall gross margin of 11.2% compared to 8.0% in Q4 FY2025. PBT increased sharply to RM5.51 million from RM0.59 million, while the Group returned to PAT of RM4.05 million compared to a loss after tax of RM0.13 million in the immediate preceding quarter.
Calvin Ooi Shang How, Executive Director of Leon Fuat commented, “Leon Fuat has started FY2026 on a stronger footing, with profitability improving meaningfully despite a relatively stable revenue base. The quarter’s performance reflects better margin management, continued discipline in inventory strategy and the resilience of our integrated trading and processing model.”
He added, “Our focus remains on strengthening operational efficiency, enhancing customer engagement and improving value capture through our steel processing and downstream manufacturing capabilities. While market conditions remain fluid, we believe our diversified customer base and broad product offerings provide a solid foundation to navigate the current operating environment.”
Looking ahead, the Group remains cautiously optimistic on its prospects for the remaining quarters of FY2026. While steel price volatility, foreign exchange fluctuations and geopolitical developments may continue to affect suppliers’ pricing and overall profitability, domestic demand is expected to remain supported by ongoing infrastructure initiatives, investment activity, manufacturing expansion and steady private sector spending. Leon Fuat will continue to monitor steel price movements and foreign exchange trends closely, while taking proactive measures such as negotiating forward contracts where necessary and maintaining prudent inventory management. The Group will also continue to optimise its operating capabilities, including its cutting, levelling, shearing, profiling, bending and finishing facilities, as well as its welded steel pipe production operations.
As at 29 May 2026, the share price of Leon Fuat is RM0.375, representing a market capitalisation of RM127.9 million.
