THE growth trajectory of Resintech Bhd, a Main Market-listed manufacturer of plastic pipes, water tanks and fittings, has continued with a commendable performance in its 2Q FY3/2025 ended Sept 30, 2024.
Driven by rising demand for its pipe systems and enhanced operational efficiencies, Resintech recorded a 21.2% year-on-year (yoy) rise in revenue to RM33.42 mil from RM27.58 mi in the same quarter of last year. Its net profit was slightly higher at RM1.98 mil (2Q FY3/2025: RM1.87 mil).
On a half-year basis, the group’s revenue edged up 17.6% yoy to RM62.03 mil from RM52.73 mil in 6M FY3/2024.
Correspondingly, Resintech’s net profit grew 36.7% yoy to RM4.06 mil from RM2.97 mil a year ago.
During the quarter under review, the group even had to navigate challenges posed by fluctuating local currency and higher operating costs, including an unrealised foreign exchange loss of RM1.36 mil.
Despite these factors, Resintech posted profit growth, reflecting the group’s on-going efforts to enhance operational efficiencies and adapt to market conditions.
“Our strong performance in 2QFY2025 underscores the effectiveness of our growth strategies and operational agility,” commented Resintech’s managing director Dr Teh Kim Poo.
“We remain focused on solidifying our position as Malaysia’s largest plastic pipe manufacturer while capitalising on new opportunities in Sarawak and beyond.”
In this regard, Resintech continues to make progress in its collaboration with SEDC Energy Sdn Bhd, a wholly-owned subsidiary of the Sarawak Economic Development Corporation (SEDC) which is dedicated to drive Sarawak’s renewable energy (RE) initiatives.
This partnership aligns with Sarawak’s ambitious green energy goals, including ground-breaking projects such as the production of sustainable aviation fuel (SAF) from algae cultivation.
“Through this joint venture, we’re contributing to the industrial plastics sector and transformative RE projects like algae-based SAF production,” enthused Teh. “We are optimistic about commencing operations in 2025 and participating in these ground-breaking initiatives.”
Looking ahead, Resintech remains cautiously optimistic. While challenges such as fluctuating currency and rising costs persist, the group remains focus on enhancing operational efficiencies and scaling its economies of scale.
At the close of today’s (Nov 29) trading, Resintech was unchanged at 63 sen with 20,100 shares traded, thus valuing the company at RM123 mil. – Nov 29, 2024
