MAIN Market-listed plastic pipe and water tank manufacturer Resintech Bhd has recorded its highest-ever full-year revenue in its FY2026 ended March 31, 2026 driven by increased demand for pipe systems across its domestic and export markets.
The group’s revenue jumped 29% year-on-year (yoy) to RM161.58 mil (FY3/2025: RM125.06 mil) following which the group’s gross profit margin grew 38.8% to RM37.1 mil.
Pre-tax profit stood at RM19.47 mil (FY3/2025: RM17.11 mil) while the group’s net earnings firmed 20.1% to RM13.55 mil (FY3/2025: RM11.28 mil).
“Demand for pipe systems remained healthy across local and export markets, thus enabling the group to convert this demand into record revenue and higher earnings attributable to shareholders,” commented Resintech’s founder and managing director Datuk Dr Teh Kim Poo.
“While the reported 4Q pre-tax profit appears lower yoy because last year included a sizeable non-cash fair value gain on investment properties (RM5.86 mil against RM7.48 mil in 4Q FY3/2025), the underlying operating performance was much stronger.”
Added Teh: “This is the more meaningful comparison for our business. The declared two sen interim dividend (FY3/2025: 1.25 sen) reflects our board’s intention to reward shareholders while balancing the group’s working capital and expansion requirements.”
For its 4Q ended FY3/2026, Resintech posted a 39.1% spike in revenue to RM40.8 mil with the quarter’s gross profit margin at 25.5%.
However, the group noted that its 4Q pre-tax profit of RM5.86 mil should be read in the context of accounting adjustments from the previous corresponding period.
In its 4Q FY3/2025, Resintech recorded a non-cash fair value gain on investment properties of RM5.3 mil from RM400,000 in 4Q FY3/2026.
Excluding these non-operational accounting adjustments, Resintech’s operational pre-tax earnings for 4Q FY3/2026 more than doubled yoy to RM5.4 mil from RM2.2 mil previously.
The improved profitability was also supported by a stronger ringgit and lower global oil prices which reduced the cost of imported raw materials such as polyethylene resin. Consequently, net cash from operating activities doubled to RM20.5 mil.
This enabled the group’s cash and bank balances alongside fixed deposits to surge 43.9% to RM26.7 mil as of end-March 2026 while total borrowings stood at RM62.3 mil and net assets per share improved to 114.74 sen.
Moving forward, the group expects product demand to remain supported by on-going utilities, water-reticulation and infrastructure requirements across Malaysia and regional markets.
The latest financial year also coincides with preparations for Resintech’s Golden Jubilee which marks the group’s 50th year in operations since its founding in 1977.
At the close of yesterday’s (May 29) trading, Resintech was up 0.5 sen or 1.12% to 45 sen with 356,700 shares traded, thus valuing the company at RM88 mil. – May 30, 2026
