Resintech Berhad: Navigating Growth and Challenges in FY2025 Q4
Greetings, fellow investors! Resintech Berhad (RB), a familiar name in Malaysia’s manufacturing and services sector, has just released its financial results for the fourth quarter and full financial year ended March 31, 2025. This report offers a comprehensive look into the company’s performance, revealing a year of significant growth while also highlighting the challenges it faces in a dynamic market environment.
The report paints a picture of resilience and strategic expansion. We’re seeing impressive full-year profit growth and strategic maneuvers that could set the stage for future success. Let’s dive deeper into the numbers and what they mean for Resintech Berhad.
Key Highlights from the Report:
- Full financial year 2025 revenue surged by approximately 17.94%.
- Profit Before Tax (PBT) for FY2025 more than doubled compared to the previous year.
- A significant fair value gain on investment properties contributed positively to profits.
- Strategic acquisitions and changes in subsidiary compositions are underway, signaling future growth directions.
Core Data Breakdown: A Look at the Numbers
Annual Performance: FY2025 vs. FY2024
Resintech Berhad demonstrated robust growth over the full financial year. The increase in demand for pipe systems played a significant role in driving the overall improved performance. Furthermore, a substantial fair value gain on investment properties turned a previous loss into a notable gain, coupled with increased income from rental and provision of labor and maintenance services.
FY2025 (Ended 31 Mar 2025)
Revenue: RM125.07 million
Profit Before Tax (PBT): RM17.02 million
Profit After Tax (PAT): RM12.69 million
FY2024 (Ended 31 Mar 2024)
Revenue: RM106.04 million
Profit Before Tax (PBT): RM8.18 million
Profit After Tax (PAT): RM6.02 million
This translates to an impressive approximate 17.94% increase in revenue and a remarkable 108.07% surge in Profit Before Tax for the full financial year.
Quarterly Performance: Q4 FY2025 vs. Q3 FY2025
While the full year showed strong growth, the current quarter’s revenue saw a slight dip compared to the immediate preceding quarter. However, despite this revenue decrease, the company managed to significantly boost its profitability, primarily driven by the fair value gain on investment properties mentioned earlier.
Q4 FY2025 (Ended 31 Mar 2025)
Revenue: RM29.33 million
Profit Before Tax (PBT): RM7.39 million
Profit After Tax (PAT): RM5.97 million
Q3 FY2025 (Ended 31 Dec 2024)
Revenue: RM33.71 million
Profit Before Tax (PBT): RM4.53 million
Profit After Tax (PAT): RM2.76 million
This represents an approximate 12.99% decrease in revenue quarter-on-quarter, but a substantial 63.13% increase in Profit Before Tax, showcasing effective profit management even with lower sales volume in the quarter.
Earnings Per Share (EPS)
A key indicator for shareholders, the earnings per share, also reflects the improved profitability:
| Period | Profit Attributable to Parent (RM’000) | Number of Ordinary Shares in Issue (‘000) | Basic Earnings Per Share (sen) |
|---|---|---|---|
| Individual Quarter (31 Mar 2025) | 4,561 | 194,406 | 2.35 |
| Current Year To Date (31 Mar 2025) | 11,297 | 194,406 | 5.81 |
Segmental Performance (Full Year Ended 31 Mar 2025)
Resintech Berhad’s operations are primarily driven by its Manufacturing and Trading segment, with contributions from Services and Investment Holding:
| Segment | External Revenue (RM’000) | Segment Results (RM’000) |
|---|---|---|
| Manufacturing and Trading | 125,065 | 15,851 |
| Services | – | 3,427 |
| Investment Holding | – | 1,129 |
| Others | – | (36) |
| Group Total (External) | 125,065 | 20,371 |
The Manufacturing and Trading segment remains the core revenue generator, while the Services and Investment Holding segments contribute positively to the group’s overall profitability.
Financial Health: Borrowings and Cash Position
As of March 31, 2025, Resintech Berhad’s financial position appears manageable. The Group’s total borrowings stood at RM60.099 million, comprising RM29.33 million in short-term secured borrowings and RM30.769 million in long-term secured borrowings. This includes hire purchase, term loans, bill payables, and bank overdrafts.
On the liquidity front, the Group reported cash and cash equivalents of RM12.713 million. This includes fixed deposits, cash and bank balances, and money market funds, offset by bank overdrafts and pledged fixed deposits. Monitoring the balance between debt obligations and available cash will be crucial for the company’s financial flexibility moving forward.
Risks and Prospects: Navigating the Future
Resintech Berhad’s management has a clear strategy to sustain its performance. The Group aims to continuously improve the performance of all its segments by boosting demand for its products, thereby achieving better economies of scale. Simultaneously, it plans to implement measures to reduce expenditure across its operations.
However, the path forward is not without its challenges. The company acknowledges the need for a cautious approach due to two significant external factors:
- Fluctuating Local Currency: A volatile Malaysian Ringgit can impact import costs for raw materials and affect the competitiveness of exports, potentially squeezing profit margins.
- Continuous Rising Costs: The ongoing trend of increasing operational costs, including raw materials, labor, and logistics, remains a persistent concern that requires vigilant management.
Despite these headwinds, the Board of Directors expresses optimism, expecting the Group to continue achieving satisfactory performance, barring any unforeseen circumstances. This outlook is bolstered by recent strategic moves, including the acquisition of Forward Metal Works Sdn Bhd, and changes in the shareholding of Johan Intan Sdn Bhd and Johan Panglima (M) Sdn Bhd, alongside the incorporation of Dunya Waja Sdn Bhd. These changes suggest a dynamic approach to expanding and optimizing the group’s operational footprint.
Summary and Investment Considerations
Resintech Berhad’s latest financial report showcases a company that has achieved significant growth over the past year, driven by increased demand and strategic asset revaluation. The full-year results demonstrate strong profitability, even as the latest quarter saw a slight revenue dip. The management’s focus on improving efficiency, increasing demand, and controlling costs indicates a proactive approach to future challenges.
While the fluctuating local currency and rising operational costs pose ongoing risks, the company’s strategic acquisitions and internal efficiency drives are positive signs. The Board’s expectation of satisfactory performance reflects confidence in their ability to navigate these external pressures.
Key points to consider moving forward:
- The sustainability of demand for pipe systems and other products.
- The effectiveness of cost reduction measures in mitigating rising operational expenses.
- The impact of currency fluctuations on the company’s import costs and overall profitability.
- The contribution and integration of recently acquired and restructured entities to the group’s overall performance.
- The ongoing strategy for managing and leveraging investment properties for future gains.
Final Thoughts and Your Perspective
From a blogger’s perspective, Resintech Berhad appears to be a company actively managing its business in a challenging economic climate. The full-year financial performance is commendable, especially the significant jump in PBT, largely aided by the fair value gain on investment properties. The strategic changes in the group’s composition suggest a forward-looking management team keen on optimizing their portfolio.
The immediate quarter’s revenue dip, while offset by profit gains, is something to monitor in future reports to understand if it’s a one-off or a trend. The acknowledged risks of currency volatility and rising costs are universal challenges for many Malaysian businesses, and how Resintech continues to innovate and adapt will be key.
What are your thoughts on Resintech Berhad’s latest performance? Do you believe their strategies are robust enough to counter the prevailing market challenges? Share your insights and let’s discuss in the comments below!
