Based on CSC Steel Holdings Berhad’s Q2 2025 results, yes — the performance does show that the counter is back on track compared to the previous year, though challenges remain. Here’s a breakdown:

? Financial Performance

Revenue: RM363.5m in Q2 2025 vs RM366.0m in Q2 2024 (slightly lower, –1%).

Profit before tax: RM22.8m in Q2 2025 vs RM9.2m in Q2 2024 (+148%).

Profit after tax: RM17.8m in Q2 2025 vs RM7.2m in Q2 2024 (+147%).

Earnings per share: 4.81 sen in Q2 2025 vs 1.95 sen in Q2 2024.

Even though revenue dipped, profit margins improved significantly due to lower raw material costs and a stronger Ringgit against USD, which reduced import costs
.

? Trend vs Previous Quarter

Revenue increased 11% quarter-on-quarter (Q2 vs Q1 2025).

Profit before tax improved 43% QoQ (RM22.8m vs RM15.9m).

Profit after tax up 41% QoQ (RM17.8m vs RM12.6m)
.

This shows the company is regaining momentum and executing better operationally.

? Outlook

Challenges: global steel overcapacity, weak China demand, US tariffs, rising domestic costs (tariffs, SST, EPF, fuel subsidies).

Positives: Malaysian anti-dumping policies, cost control, efficiency, stronger Ringgit.

The company remains “cautiously optimistic” and is prioritising financial resilience
.

✅ Conclusion:
Yes — the steel counter is showing a strong recovery from previous losses/weak quarters. Despite slightly lower revenue, profitability is sharply up year-on-year and quarter-on-quarter. This suggests the company is back on track operationally, but external risks (global overcapacity, tariffs, domestic cost pressures) still need to be managed.

Yarlung Tsangpo Hydropower Project Launched, Driving Steel Demand and Market Surge
On July 19, the Yarlung Tsangpo River Lower Reach Hydropower Project officially began construction in Nyingchi, Tibet. The massive project involves five cascading hydropower stations, with a total investment of RMB 1.2 trillion and 5 million tons of steel required. Rebar price in China up 10% since June 2025

CSC Steel - Benjamin Graham Would Love This Stock

CSC Steel Holdings Berhad is one of the more prominent cold-rolled steel producers in Malaysia. The company is majority-owned by China Steel Corporation (CSC) of Taiwan, and several members of its senior management team are seconded from the parent company. Its principal raw material - hot-rolled steel coils - is primarily sourced from the parent group ensuring supply chain stability.

While the steel industry is inherently cyclical, CSC Steel has demonstrated resilience across market cycles, having remained profitable in nearly every year over the past two decades. The sole exception was in 2014, when the company incurred a loss due to a combination of global oversupply, aggressive low-cost imports, and a sharp decline in steel prices.

The most recent industry bottom occurred in 2020, following the peak in 2022. At present, the market appears to be in the downward leg of the cycle. Despite this, CSC Steel managed to remain profitable throughout the 2019–2024 period, although 2021 was an outlier year in which the company did not generate positive operating cash flow.

Over this five-year span, the company achieved a Return on Equity (ROE) ranging from 1.7% to 9.9%, with an average of approximately 5% -ma modest but consistent performance.

What stands out about CSC Steel is its valuation. The current share price of RM 1.18 trades significantly below its Graham Net-Net value of RM 2.00, a conservative estimate often used as a proxy for liquidation value. Given its clean balance sheet, consistent profitability, and strong backing from CSC Taiwan, CSC Steel does not exhibit any signs of financial distress.

This combination of subdued business performance and low investment risk places CSC Steel on the borderline between the “Goldmine” and “Turnaround” quadrants of the Fundamental Mapper - an apt reflection of its value-oriented appeal.