KUALA LUMPUR (Dec 12): Magni-Tech Industries Bhd's net profit for its second quarter ended Oct 31, 2017 (2QFY18) dropped 28% to RM20.5 million or 12.6 sen per share, from RM28.52 million or 17.53 sen per share a year ago, due to lower garment sales and the closure of its offset printing packaging business.

The offset printing packaging business ceased in the fourth quarter of FY17 (4QFY17), it said in a Bursa Malaysia filing today.

The garment business made up the lion's share or 90.5% of the group's revenue for the quarter under review, which retreated 10% year-on-year to RM252.32 million from RM279.79 million in 2QFY17.

Notwithstanding that, it declared a second single tier interim dividend of 4.5 sen per share, which amounted to RM7.32 million, in respect of its FY18 — bringing the 6MFY18 dividend to 8 sen, down from 10 sen in 6MFY17.

In 6MFY18, Magni-Tech's net profit declined 23% y-o-y to RM40.09 million from RM52.05 million, as its garment division profit was pressured by higher foreign exchange losses and operating expenses. At the same time its packaging business saw higher raw material costs and operating expenses, on top of lower revenue.

Revenue for the period, however, only slid 1% y-o-y to RM546.03 million from RM551.18 million, which was mainly due to lower packaging business revenue after the cessation of its offset printing packaging business, but mitigated by higher garment division revenue in the first quarter of FY18.

Shares of Magni-Tech slid 8 sen or 1.31% to RM6.01, giving it a market capitalisation of RM978.02 million.