Magni-Tech 1Q net profit up 12%, declares 5 sen dividend

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KUALA LUMPUR (Sept 12): Magni-Tech Industries Bhd’s first quarter net profit grew 12.38% to RM22.01 million or 13.53 sen per share, compared with RM19.59 million or 12.04 sen per share a year ago, on higher earnings from its garment business.

Total revenue for the quarter ended July 31, 2018 (1QFY19) however, fell 6.8% to RM273.74 million, from RM293.71 million previously.

In a filing with Bursa Malaysia, Magni-Tech attributed higher earnings from its garment business to a higher foreign exchange gain, lower operating expenses to revenue ratio resulting from productivity improvement, and higher income from investment in money market unit trusts.

The group declared a single tier interim dividend of 5 sen per share, payable on Oct 26.

Moving forward, Magni-Tech said the manufacturing and sale of garment will still be the group's major revenue contributor.

While the group's operating environment for the remaining quarters of the year are expected to be challenging amid persisting global economic uncertainties, Magni-Tech said its garment and packaging businesses are seen to remain profitable during the period.

Shares of Magni-Tech closed two sen or 0.43% lower at RM4.68 today, for a market capitalisation of RM761.59 million. Over the past year, the counter fell about 35.18% from RM7.22.