MAIN Market-listed plastic infrastructure products manufacturer Resintech Bhd has posted a strong start to is financial year ending March 31, 2027 (FY3/2027) with significant bottom-line growth.
The group’s net profit for its 1Q FY3/2027 ended 30 June 2026 spiked 82.7% year-on-year (yoy) to RM4.75 mil (1Q FY3/2026: RM2.61 mil) with its basic earnings per share correspondingly rose to 2.44 sen from 1.34 sen previously.
The group’s pre-tax profit during the period under review spiralled 68.3% yoy to RM7.0 mil (1Q FY3/2026: RM4.16 mil) while revenue grew 6.5% yoy to RM43.43 mil (1Q FY3/2026: RM40.76 mil).
The stronger earnings were mainly driven by improved margins with gross profit margin having edged up to 28.1% from 21.3% a year earlier.
On this note, the group’s gross profit consequently notched up 40.5% to RM12.18 mil while cost of sales fell 2.6%.
The 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 mil 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.
Highly resilient balance sheet
The stronger earnings were achieved despite a RM830,000 impairment loss on receivables and a RM780,000 unrealised foreign exchange loss during the quarter.
Excluding these two items, the group’s pre-tax profit would have been approximately RM8.61 mil or soared 85.5% yoy on a similarly adjusted basis.
“We’re encouraged by the improvement in earnings this quarter, particularly the stronger gross profit and continued contribution from our export business in Cambodia,” commented Resintech’s founder and managing director Datuk Dr Teh Kim Poo.
“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.”
Added Teh: “Our priority is to stay disciplined. We will continue to manage costs carefully, monitor receivables and inventory closely as well as remain selective in pursuing opportunities that can contribute to sustainable growth without putting unnecessary pressure on the group’s balance sheet.”
As of end-June 2026, Resintech’s total assets stood at RM355.11 mil while its total equity rose to RM226.80 mil with the group’s net assets per share improved to 115.43 sen.
Resintech generated RM4.61 mil in net cash from operating activities during the quarter which effectively converting profit to cash despite deliberate investments in inventory (+12.7% qoq) to secure raw materials amid supply disruptions.
Its balance sheet remains highly resilient with total liquid assets of RM28.3 mil against total borrowings of RM64.0 mil which translates 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 the ringgit fluctuation against the greenback as well as geopolitical developments that may affect the availability and cost of raw materials.
Barring unforeseen circumstances, its board expects the group to continue to achieve satisfactory performance for the financial year.
At 2.31pm, Resintech was up 1.5 sen or 3.41% to 45.5 sen with 211,400 shares traded, thus valuing the company at RM89 mil. – Aug 27, 2026
