SHAH ALAM, MY / ACCESS Newswire / August 28, 2026 / Leon Fuat Berhad ("Leon Fuat" or the "Group"), a manufacturer and trader of steel products specialising in rolled long and flat steel, delivered a strong profit performance for the second quarter ended 30 June 2026 ("Q2 FY2026"), driven by higher sales and a significant improvement in gross profit margin.
Calvin Ooi Shang How, Executive Director of Leon Fuat
For Q2 FY2026, the Group recorded revenue of RM250.62 million, an increase of 9.5% from RM228.84 million in the preceding year corresponding quarter ("Q2 FY2025"). The improvement was supported by higher revenue from both the trading and processing of steel products.
The trading segment recorded revenue of RM93.90 million, up 17.7% YoY, while the processing segment generated RM156.55 million, up 5.0% YoY. Together, the two core segments continued to account for approximately 99.9% of the Group's quarterly revenue.
Gross profit jumped 71.3% to RM41.30 million from RM24.11 million in Q2 FY2025, while overall gross profit margin expanded by approximately 6.0 percentage points to 16.5% from 10.5% previously. The stronger margin, coupled with higher revenue, was the key driver of the Group's sharp earnings improvement during the quarter.
As a result, profit before tax ("PBT") surged 218.2% to RM21.15 million from RM6.65 million in Q2 FY2025, while profit after tax ("PAT") rose 236.5% to RM18.06 million from RM5.37 million. Earnings per share strengthened to 5.30 sen compared with 1.57 sen in the preceding year corresponding quarter.
The strong profit momentum was also evident on a quarter-on-quarter basis. Revenue increased 16.7% from Q1 FY2026, gross profit rose 71.4%, PBT climbed 283.6% and PAT surged 346.2%. Overall gross profit margin improved to 16.5% from 11.2% in the immediate preceding quarter.
For the six months ended 30 June 2026 ("1H FY2026"), revenue increased 5.5% YoY to RM465.46 million, while gross profit rose 49.8% to RM65.39 million. PBT more than triples to RM26.67 million, up 213.1%, while PAT surged 226.7% to RM22.11 million. The 1H FY2026 gross profit margin improved to 14.0% from 9.9% in the corresponding period last year.
Calvin Ooi Shang How, Executive Director of Leon Fuat commented, "Our Q2 FY2026 results reflect a meaningful step-up in profitability, supported by stronger sales activity and a significant improvement in gross profit margin. The performance demonstrates the earnings leverage in our integrated trading and value-added processing model when volumes and margins improve."
He added, "We remain focused on disciplined inventory management, adaptive pricing and operational efficiency. At the same time, we will continue to strengthen customer engagement and leverage our broad processing and downstream manufacturing capabilities to capture value-added opportunities across our diversified customer base."
Looking ahead, the Group remains cautiously optimistic that it will deliver positive results for the remaining quarters of FY2026. Leon Fuat will continue to monitor steel price movements, foreign exchange trends and other critical business parameters, while maintaining prudent inventory management and enhancing operating capabilities and efficiencies.
As at 27 August 2026, the share price of Leon Fuat is RM0.34, representing a market capitalisation of RM115.9 million.
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About Leon Fuat
Leon Fuat Berhad ('Leon Fuat' or the Group') primarily in the business of trading, processing and/or manufacturing (collectively referred to as "processing") of steel products, specialising in rolled long and flat steel products.
The Group's trading activities consist of a wide portfolio of steel products, which includes flat products such as coils, plates, sheets, welded tubes, and pipes, welded rectangular and square sections, and long products such as bars, rods, shafts, sections, angles, channels and seamless tubes and pipes.
The Group's processing business is synergistic to the trading operations. As part of the Group's value-added activities, Leon Fuat undertakes processing activities in the form of cutting, levelling, shearing, profiling, bending, finishing and production of welded steel pipe and expanded metal.
As an established name, Leon Fuat has a strong portfolio of customers of more than 3,000 and have a long-standing relationship with customers.
For more information, please visit www.leonfuat.com.my.
Issued By: Swan Consultancy on behalf of Leon Fuat Berhad
For more information, please contact:
Jazzmin Wan
Email:j.wan@swanconsultancy.biz
Stephanie Chow
Email: s.chow@swanconsultancy.biz
SOURCE: Leon Fuat Berhad
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/metals-and-mining/leon-fuat-q2-fy2026-pat-surges-236.5-yoy-to-rm18.06-million-1213837
