Malaysia Smelting Corporation Berhad (MSC) Posts Robust 3QFY25 Results: Net Profit Up 42.7%

Kuala Lumpur and Singapore, 25 November 2025 – Malaysia Smelting Corporation Berhad (MSC), a leading tin miner and metal producer, has delivered a strong set of results for the third quarter ended 30 September 2025 (3QFY25), with several key developments that investors should closely monitor.

Key Financial Highlights

• Revenue Growth: MSC’s revenue rose to RM529.5 million in 3QFY25, up 12.7% year-on-year from RM470.1 million in 3QFY24. The performance was driven by higher sales of refined tin and tin bearing intermediates, alongside a higher average tin price of RM143,500 per metric tonne (MT) compared to RM141,500 in the previous year.
• Net Profit Surge: The Group’s net profit attributable to shareholders soared 42.7% year-on-year to RM20.4 million in 3QFY25 from RM14.3 million a year earlier. This translates to a net margin of 3.9% versus 3.0% in 3QFY24.
• Segment Performance:
  • Tin Smelting Division: This segment reported a loss after tax of RM1.6 million, primarily due to trading losses and adverse foreign exchange impacts from a stronger Ringgit. However, this was a significant improvement from the RM10.3 million loss in 3QFY24, thanks in part to increased sales of higher-margin tin intermediates.
  • Tin Mining Segment: Profit after tax rose 8% year-on-year to RM24.4 million, driven by higher tin production and elevated tin prices.
• Year-to-Date Performance: For the nine months ended 30 September 2025 (9MFY25), revenue increased 2.8% to RM1.3 billion. However, net profit declined to RM42.1 million from RM49.2 million in the same period last year, mainly due to a one-off additional tax assessment imposed by the Inland Revenue Board (IRB) on the Group’s mining subsidiary, Rahman Hydraulic Tin Sdn. Bhd. (RHT).

Quarter-on-Quarter Acceleration

• QoQ Revenue and Profit: On a quarter-on-quarter basis, revenue surged by 39.7% from RM379.0 million in 2QFY25 to RM529.5 million in 3QFY25, while net profit jumped 46.3% to RM20.4 million. The net profit margin improved to 3.9% from 3.7% in the previous quarter.

Strategic and Operational Developments

• Transition to Pulau Indah Smelter: MSC is progressing with the decommissioning of its long-standing Butterworth smelter, shifting operations to the Pulau Indah plant. This transition is expected to deliver cost advantages, enhance efficiency, reduce operational and manpower needs, and shrink the Group’s carbon footprint thanks to the use of natural gas and rooftop solar installations.
• Mining Expansion: The Group is intensifying mining activities by expanding its footprint, enlarging resource areas, and adopting more efficient extraction and processing methods. There are also plans to pursue new joint ventures in mining.

Market Outlook and Price-Sensitive Considerations

• Tin Market Dynamics: The outlook for tin remains positive, underpinned by sustained demand from technology-driven sectors such as renewable energy, electronics manufacturing, artificial intelligence infrastructure, and defence. However, global tin supply remains constrained, creating a structurally tight market. Regulatory actions in key markets (e.g., Indonesia’s measures against illegal mining) may further tighten supply and influence future tin prices.
• Profitability Drivers: Higher tin prices and improved operational efficiencies are key margin drivers. However, currency volatility and regulatory risks (such as unexpected tax assessments) can significantly affect profits and, by extension, share value.

Management Commentary

Dato’ Dr. Patrick Yong, Group CEO, expressed confidence in the Group’s trajectory, citing ongoing enhancements in operational performance, technology, and strategic business development. He highlighted the importance of regulatory developments and global supply constraints in shaping the tin market, which could have material implications for MSC’s future earnings.

Conclusion: Investor Takeaways

• Strong profit growth in 3QFY25 with margin improvement, despite segmental challenges.
• Positive market outlook for tin, but investors should monitor supply risks and regulatory changes.
• Cost efficiencies and sustainability initiatives through the Pulau Indah smelter transition could support long-term competitiveness.
• One-off regulatory risks (e.g., tax assessment) can impact bottom line.

These developments are material and may influence MSC’s share price, especially given the sector’s sensitivity to both operational performance and global tin market dynamics.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.

View MSC Historical chart here