Magni-Tech 1Q profit up 38.6%; firm declares 7 sen dividend

This article first appeared in The Edge Financial Daily, on September 11, 2019.
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KUALA LUMPUR: Magni-Tech Industries Bhd achieved a 38.6% growth in net profit for the first financial quarter ended July 31, 2019 (1QFY20) to RM30.51 million or 18.76 sen per share, compared with RM22.01 million or 13.53 sen per share a year ago. Quarterly revenue expanded 19.6% to RM327.33 million from RM273.74 million.

In a filing with Bursa Malaysia yesterday, Magni-Tech attributed the higher revenue to its garment business, which accounted for about 92.5% and 96.8% of the group’s revenue and operating profit respectively for 1QFY20.

For the packaging business, the company saw its profit before tax for the quarter jump 25.9%.

The group declared a single-tier interim dividend of seven sen per share, higher than the five sen declared for 1QFY19. The dividend is payable on Oct 25. On prospects, the group said the manufacturing and sale of garments will remain as its major revenue contributor.

While the group’s operating environment for the remainder of the year is 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.