RESINTECH Bhd, a Main Market listed manufacturer of plastic pipes, water tanks and fittings, has announced a robust start to its FY3/2025 following the momentum gained in its FY3/2024 when the group’s revenue surpassed the RM100 mil revenue milestone.
For its 1Q FY3/2025 ended June 30, 2024, the group posted a notable 41.15% jump in net profit to RM1.85 mil from RM1.31 mil in the corresponding quarter of the previous year.
This strong performance aligns with a 13.71% growth in revenue which reached RM28.6 mil during the quarter under review from RM25.15 mil in 1Q FY3/2024.
The improved revenue was primarily driven by heightened demand for the group’s products, coupled with enhanced productivity and operational efficiency.
The group’s gross profit also saw significant improvement, growing by 27.20% to RM6.20 mil in 1Q FY3/2025 from RM4.87 mil a year ago. This growth reflects the successful implementation of strategies aimed at improving margins and achieving better economies of scale.
“We are pleased with the strong start to FY3/2025 which underscores our commitment to driving growth and delivering value to our stakeholders,” commented Resintech’s managing director Datuk Dr Teh Kim Poo.
“The increase in demand for our products and our ongoing efforts to improve efficiency have contributed to these positive results.”
According to Teh, Resintech is strategically positioned to benefit from Malaysia’s on-going national infrastructure projects, particularly under the 12th Malaysia Plan (12MP) which focuses on modernising the water piping landscape and overhauling the nation’s piping infrastructure.
As Malaysia’s largest high-density polyethylene (HDPE) pipe manufacturer, Resintech has already secured around RM15 mil in HDPE pipe orders from Pengurusan Aset Air Bhd (PAAB).
He further highlighted the group’s strategic advantage in the national infrastructure overhaul by contending that the national re-invigoration of water piping infrastructure presents an exciting opportunity for Resintech.
“As key contributors to this infrastructural shift, we anticipate significant earnings growth in the ensuing years. Our remarkable performance in securing contracts and the subsequent financial uplift underscores Resintech’s resilience and capability in navigating a competitive landscape.”
Added Teh: “Moving forward, we will continue to focus on enhancing our operational performance and expanding our market presence.’
Despite the optimism on the outlook going forward, Teh also acknowledged the challenges posed by the current economic environment, pointing to the weakened local currency and on-going rise in costs.
“To navigate these challenges, we are implementing measures to streamline our operations and reduce expenditure where possible. Barring any unforeseen circumstances, we are confident in our ability to achieve satisfactory performance throughout FY3/2025.”
At the close of today’s trading, Resintech was up 1.5 sen or 2.65% to 58 sen with 37,000 shares traded, thus valuing the company at RM114 mil. – Aug 30, 2024
