KUALA LUMPUR (Sept 12): Magni-Tech Industries Bhd's net profit for the first quarter ended July 31, 2022 (1QFY23) rose 14.16% to RM24.03 million from RM21.05 million a year ago, underpinned by higher sales orders received from both its garment and packaging segments.
Earnings per share were up to 5.54 sen from 4.85 sen previously, its Bursa Malaysia filing on Monday (Sept 12) showed.
Quarterly revenue grew 11.57% to RM340.91 million — its highest since 3QFY21 — from RM305.57 million recorded in the same period a year ago.
Magni-Tech's businesses are mainly divided into two business segments, namely the manufacturing and sale of garments, as well as flexible plastic packaging and corrugated cartons, with the garment segment accounting for about 92.5% of all of the group's revenues and profits from operations.
For the quarter under review, the garment's segment saw an 11.4% increase in revenue to RM315.35 million from RM283.02 million, whereas the packaging segment's revenue increased by 13.3% to RM25.56 million from RM22.55 million.
Additionally, the group declared a single-tier interim dividend of 2.2 sen per share, to be payable on Oct 12.
On a quarterly basis, Magni-Tech's net profit dropped by 10.66% from RM26.89 million posted for 4Q22 despite revenue climbing by 31.97% from RM258.32 million in the immediate preceding quarter.
Looking ahead, Magni-Tech noted in addition to the slow recovery from Covid-19 pandemic, the conflict in Ukraine coupled with the high global inflation have further damaged consumers' confidence and caused the global economic outlook to remain sluggish.
As such, the group said it would maintain a very prudent approach in managing business risks and finance.
"While efforts are continuously made to improve the group's business operations and performance, the group remains cautious about the business outlook and financial performance for the remaining quarters of [financial year] 2023," it added.
Shares in Magni-Tech closed two sen or 1.06% higher at RM1.90 on Monday (Sept 12), valuing the group at RM824.5 million.
Source: TheEdge - 13 Sep 2022
