Financial Summary
Magni-Tech Industries Berhad’s first quarter of fiscal year 2026 (ended July 31, 2025) saw total revenue of RM377.605 million, a 13.7% decrease compared to the same period last year. This decline was primarily attributed to a 13.9% decrease in revenue from the garment manufacturing segment to RM358.973 million and a 9.8% decrease in revenue from the packaging segment to RM18.632 million. Profit before tax decreased by 19.3% to RM47.212 million, while net profit decreased by 20.3% to RM35.586 million. Basic earnings per share decreased by 20.3% to 8.21 sen. The company declared an interim dividend of 3.5 sen per share.
Business Performance Analysis
The garment manufacturing segment was the primary contributor to the company’s revenue and operating profit, accounting for 95.1% of total revenue. The decline in garment segment revenue was mainly due to lower sales orders received. The packaging segment also experienced a decrease in revenue due to lower sales orders. Despite this decline, profit before tax in the packaging segment increased by 77.7%, primarily attributed to lower raw material costs.
Financial Position
As of July 31, 2025, the company’s total assets amounted to RM1,075.846 million, total liabilities were RM170.953 million, and shareholders’ equity was RM904.893 million. The company held RM66.015 million in cash and cash equivalents.
Risks and Outlook
The company faces risks associated with the slowing global economic growth, heightened geopolitical tensions, and persistent policy uncertainties. While inflation is expected to gradually decline, it remains a concern. Despite these challenges, the company maintains a cautiously optimistic outlook for the remaining quarters of FY2026 and is committed to actively navigating potential challenges and risks to ensure the sustainability of its operations.
Dividends
The company declared an interim dividend of 3.5 sen per share.
Summary
Magni-Tech Industries Berhad’s first-quarter fiscal year 2026 results were slightly below expectations, with declines in both revenue and profit. However, improved profitability in the packaging segment offers a positive signal for future growth. The company needs to closely monitor changes in the global economic environment and take necessary steps to mitigate potential risks. Overall, the company’s financial position remains sound.