Thursday 28 Mar 2024
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KUALA LUMPUR: Magni-Tech Industries Bhd, whose net profit leaped 54% in the first financial quarter ended July 31, 2015 (1QFY16), has proposed a one-for-two bonus issue. 

The Penang-based garments manufacturer announced yesterday that its net profit ballooned to RM15.57 million, or 14.35 sen a share, in 1QFY16, from RM10.08 million, or 9.3 sen a share, in the previous corresponding quarter. The company attributed the better earnings to higher revenue and other operating income, coupled with lower cost of sales for the garment business.

In a filing with Bursa Malaysia yesterday, the group, which is also involved in packaging products, reported 1QFY16 revenue of RM193.82 million, which was 9.4% higher than its 1QFY15 revenue of RM177.24 million, attributed to the higher sales orders received from the garment business.

On prospects, Magni-Tech, which is sitting on a net cash position of RM100 million, said the manufacturing and sales of garments will remain its major revenue contributor.

It maintains a cautiously positive outlook for the remaining quarters of the current financial year.  Both the garment and packaging businesses are expected to remain profitable for the current financial year.

On its bonus issue, the group said in a separate announcement that the proposed bonus issue would involve the issue of up to 54.24 million bonus shares.

The proposed bonus issue shall be capitalised from the share premium and retained earnings accounts of the company, it said.

 

This article first appeared in digitaledge Daily, on September 10, 2015.

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