Magni-Tech 1Q net profit falls 21.34% on lockdown impact

Magni-Tech 1Q net profit falls 21.34% on lockdown impact
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KUALA LUMPUR (Sept 14): Magni-Tech Industries Bhd’s net profit for the first quarter ended July 31, 2021 (1QFY21) fell 21.34% to RM21.05 million from RM26.76 million a year earlier, due to higher cost of sales coupled with the adverse effects of the lockdown.

Earnings per share declined to 4.86 sen from 6.17 sen, the garment manufacturer’s filing with Bursa Malaysia showed.

Revenue was up 4.7% to RM305.57 million from RM291.99 million in 1QFY20, on higher sales order for garments.

On a quarter-on-quarter basis, net profit dropped 31.3% from RM30.62 million in 4QFY20 while revenue rose by a marginal 2.7% from RM297.54 million, supported by an increase in garment revenue.

Magni-Tech did not declare any dividend in the quarter.

Besides garments, the group also manufactures flexible plastic packaging goods and corrugated cartons. The garment segment accounted for 92.6% and 98% of its revenue and profit, the group said.

Meanwhile, the group said its production facilities in Ho Chi Minh City, Vietnam remain suspended due to the extension of lockdowns to Sept 15.

The management is proactively working with various local authorities for the reopening of production facilities, it added.

“We are engaging with our customers very closely on our order status, our mitigation and ramp up plans.

“With the solid financial position, we are confident that we will be able to overcome these unprecedented challenges and hopefully emerge stronger,” the group said.
 
Magni-Tech finished one sen or 0.45% lower at RM2.20, valuing the group at RM954.69 million.

S Kanagaraju