SHAH ALAM: Techbond Group Bhd (TGB) recorded revenue of RM36.4 million for the first quarter (Q1) ended September 30, 2024 (FY25), a slight increase from RM36.38 million posted in Q1 FY24, driven by sustained order demand.
Industrial adhesives and sealants remained the group’s primary revenue contributor, accounting for RM27.3 million or 74.9% of total revenue, with the remainder generated from supporting products and services.
TGB’s Q1 FY25 profit before tax (PBT) stood at RM3.0 million, compared to RM3.9 million a year ago.
This was primarily due to an unrealised foreign exchange loss of RM2.0 million in Q1 FY25, compared to RM0.6 million last year.
These are non-cash items and have no impact on TGB’s cash flow.
TGB deputy managing director Lee Seh Meng said that looking ahead, the group’s prospects remain promising while being mindful of the global macroeconomic uncertainties.
He said in Q1, volatile foreign exchange movements, especially the depreciation of the USD against the ringgit, have caused customers to adopt a more cautious approach and hold back on orders given this uncertainty.
“Additionally, port congestion also affected deliveries. On a much brighter note, orders have been rebounding healthily, with overall demand growing.
“Apart from that, the order momentum from the new countries we secured is gaining pace while we continue to expand our geographical presence,“ he said.
On the company’s Vietnam operations, Lee said demand has been on an uptrend as orders from the key industries we serve gain good traction.
He said the upstream polymerisation plant continues to supply for in-house production needs and for the company’s external customers.
“At the same time, the group made further progress in the discussions with potential customers.
“On Malayan Adhesives and Chemicals Sdn Bhd (MAC), the implementation of internal control measures remains ongoing, and we are also looking to enhance our machines and equipment to improve production capabilities and efficiency,“ Lee said.
He said the prospects of TGB continue to be bright premised on the aforementioned factors.
The board opines that the financial performance in FY25 will be satisfactory, barring any unforeseen circumstances.
TGB’s financial position remains strong, with a net cash per share of 8.4 sen as of 30 September 2024.
The company declared a first interim dividend of 1.0 sen per share in Q1.
