Recasting the Business: How Mayu Global Left Steel Behind

Mayu Global, formerly a steel-centric industrial group prior to 2020, has transformed into a diversified entity with property development now a central pillar of its business.

In 2019, the steel segment generated approximately RM150 million in revenue. However, this has declined by about two-thirds to an average of RM50 million annually over the past three years. This shift away from steel is understandable, as the segment has been consistently unprofitable over the past six years.

While the move into property development was initiated by the previous board in 2018, the change in controlling shareholders around 2022/23 appears to have solidified the group’s strategic pivot. Under the new leadership, there has been a marked increase in execution focus and capital commitment toward property projects.

In 2023, property development accounted for about ¾ of the group’s total revenue. Although this reduced to half in 2024, the property development segment still accounted for a big part of the profits in 2024.

Given the business mix today, peer comparisons would be more meaningful against property developers rather than steel manufacturers.

Hot rolled steel prices have risen by about 20% since the start of the year. Will this boost the performance of the steel flat companies? If you want to understand more about the impact of the steel price on other Bursa flat steel companies, join me this at this Thursday podcast

Date: 22 May 2025 (Thu)
Time: 8:30pm
Link: https://www.facebook.com/xifu.my

Here are the companies

https://klse.i3investor.com/web/blog/detail/Innothestar/2024-06-02-story-h-160566389-The_Under_rated_and_unknown_Data_Centre_related_stocks_in_Bursa_Malaysi

1. MAYU (7099)

How Mayu is related to Data Centre

Under their steel perforation business:

•Cable Support Systems

•Cable Tray

•Cable Ladder

•Cable Ducting

•Cable Trunking

•Metal Perforation and Fabrication