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Techbond maintains profit growth as ringgit strength weighs on revenue

SHAH ALAM: Techbond Group Bhd recorded revenue of RM64.7 million for Q2 ended December 31, 2025 (FY26) against RM74.8 million posted in Q2 FY25.

The lower revenue was mainly attributable to the translation impact of foreign-currency-denominated revenue following the appreciation of the ringgit, as well as to the optimisation of the product portfolio within the chemical segment.

Nevertheless, the group achieved a cumulative six-month net profit of RM9.5 million, representing a 11.7% year-on-year (YoY) increase from RM8.5 million in 1H FY25.

This performance was primarily supported by improved cost efficiencies and higher finance income.

CEO Lee Seh Meng said the group remains vigilant amid the evolving macroeconomic environment.

“Our priority remains a two-pronged approach of growing the business while optimising cost efficiency. Adhesives sales have continued to grow on a constant currency basis, supported by ongoing customer acquisition across the sectors we serve.

“Overall demand remains on an uptrend, and the group is actively capitalising on the opportunities ahead, including through additional resource allocation and the strengthening of our sales team.

“Within our upstream polymerisation segment, we are encouraged by the
positive progress, with orders from new customers gradually gaining traction. In
parallel, the group continues to enhance operational cost efficiency through in-house research and development initiatives.

“We also continue to benefit from our rooftop solar installation, which supports both cost management and operational sustainability. Overall, we remain confident in navigating the challenges ahead, underpinned by our resilient business model, healthy margins, and a robust balance sheet with a net cash position,” Lee said.

For Q2 FY26, Techbond recorded revenue of RM31.8 million versus RM38.4 million in Q2 FY25.

This was mainly attributable to the same factors highlighted earlier.

Meanwhile, net profit for Q2 FY26 came in at RM4.7 million vis-à-vis RM6.4 million in Q2 last year.

The current quarter included an unrealised foreign exchange loss of RM0.3 million versus an unrealised foreign exchange gain of RM2.5 million in Q2 FY25.

Adjusting for these items, net profit for the current quarter would have been higher on a YoY basis.

These unrealised movements are non-cash in nature and have no impact on the group’s cash flow.

The group’s balance sheet remains healthy, supported by a net cash position.

Net cash per share improved to 16.2 sen as at December 31, 2025, compared with 10.0 sen a year earlier.

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