KUALA LUMPUR: Resintech Bhd recorded a notable 41.15% increase in net profit of RM1.85 million for the first quarter (Q1) ended June 30, 2024 (FY25) compared to RM1.31 million posted in Q2 FY24.
This strong performance aligns with a 13.71% revenue growth, which reached RM28.60 million in Q1 FY25, up from RM25.15 million in Q1 FY24.
The revenue increase was primarily driven by heightened demand for the group’s products and enhanced productivity and operational efficiency.
The group’s gross profit also significantly improved, growing by 27.20% to RM6.20 million in Q1 FY25, compared to RM4.87 million in the same quarter last year.
This growth reflects the successful implementation of strategies to improve margins and achieve better economies of scale.
Resintech managing director Datuk Dr Teh Kim Poo said the increase in demand for the company’s products and ongoing efforts to improve efficiency have contributed to these positive results.
Resintech is strategically positioned to benefit from Malaysia’s ongoing national infrastructure projects, particularly under the 12th Malaysia Plan (12MP), which focuses on modernising the water piping landscape and overhauling the nation’s piping infrastructure.
As Malaysia’s largest high-density polyethylene (HDPE) pipe manufacturer, Resintech has already secured around RM15 million in HDPE pipe orders from Pengurusan Aset Air Bhd (PAAB).
Teh further highlighted the group’s strategic advantage in the national infrastructure overhaul.
“The national reinvigoration of water piping infrastructure presents an exciting opportunity for Resintech. As key contributors to this infrastructural shift, we anticipate significant earnings growth in the ensuing years.
“Our remarkable performance in securing contracts and the subsequent financial uplift showcase Resintech’s resilience and capability in navigating a competitive landscape.
“Moving forward, we will continue to focus on enhancing our operational performance and expanding our market presence,“ he added.
Resintech manufactures plastic pipes, water tanks, and fittings.
Despite the optimism on the outlook for the future, Teh also acknowledged the challenges posed by the current economic environment, pointing to the challenges of the weakened local currency and ongoing rise in costs.
“To navigate these challenges, we are implementing measures to streamline our operations and reduce expenditure where possible.
“Barring any unforeseen circumstances, we are confident in our ability to achieve satisfactory performance throughout FY25,” he said, pointing to the improvement in margin during Q1.
