KUALA LUMPUR: Main Market-listed plastic infrastructure products manufacturer Resintech Bhd recorded a strong start to the financial year ending March 31, 2027 (FY27), posting significant bottom-line growth.
For Q1 FY27, net profit rose 82.5% year-on-year (YoY) to RM4.75 million from RM2.60 million in the same quarter last year.
Basic earnings per share correspondingly increased to 2.44 sen from 1.34 sen previously.
Profit before taxation (PBT) increased 68.4% YoY to RM7.00 million, while revenue grew 6.5% YoY to RM43.43 million.
The stronger earnings were mainly driven by improved margins, with gross profit margin rising to 28.1% from 21.3% a year earlier.
Gross profit consequently increased 40.5% to RM12.18 million, while cost of sales fell 2.6%. Management attributed the margin improvement mainly to raw material supply constraints arising from geopolitical tensions in the Middle East, which supported higher selling prices during the quarter.
Revenue growth was supported by the group’s regional expansion footprint, specifically RM2.41 million in export sales to Cambodia for water infrastructure projects.
This export contribution helped offset generally softer domestic market demand, as some customers adopted a more cautious approach.
The stronger earnings were achieved despite a RM0.83 million impairment loss on receivables and a RM0.78 million unrealised foreign exchange loss during the quarter.
Excluding these two items, PBT would have been approximately RM8.61 million, representing an 85.5% increase YoY on a similarly adjusted basis.
Resintech founder and managing director Datuk Dr Teh Kim Poo said the stronger gross profit was driven by the continued contribution from its export business in Cambodia.
“At the same time, we recognise that part of the margin improvement was supported by prevailing raw-material supply conditions and higher selling prices during the quarter.
“Our priority is to stay disciplined. We will continue to manage costs carefully, monitor receivables and inventory closely, and remain selective in pursuing opportunities that can contribute to sustainable growth without putting unnecessary pressure on the group’s balance sheet,” he said.
As at June 30, 2026, Resintech’s total assets stood at RM355.11 million, while total equity increased to RM226.80 million.
Net assets per share improved to 115.43 sen.
The group generated RM4.61 million in net cash from operating activities during the quarter, effectively converting profit to cash despite deliberate inventory investments to secure raw materials amid supply disruptions.
The balance sheet remains highly resilient, with total liquid assets of RM28.3 million against total borrowings of RM64.0 million, translating to a comfortable net gearing ratio of 0.16 times.
Looking ahead, Resintech will continue to strengthen demand for its products across its operating segments while maintaining measures to control and reduce expenditure.
The group remains cautious on fluctuations in the ringgit against the US Dollar as well as geopolitical developments that may affect the availability and cost of raw materials.
The board expects the group to continue to achieve satisfactory performance for the financial year.
