KUALA LUMPUR (Dec 10): Magni-Tech Industries Bhd’s net profit jumped 29% to RM29.87 million for the second quarter ended Oct 31, 2019 (2QFY19) from RM23.21 million a year earlier, amid higher revenue and lower operating costs. 

The group also recorded a higher foreign exchange gain of RM2.63 million during the quarter, versus RM2 million previously. 

Revenue rose 18% to RM301.33 million from RM255.76 in the year-ago second quarter (2QFY18), mainly contributed by sales from the group’s garment segment, which saw revenue grow 22% amid higher sales orders. 

Meanwhile, the packaging segment saw a 15% fall in revenue, due to lower sale orders received. 

For the first half of its financial year (1HFY19), Magni-Tech’s net profit climbed 34% to RM60.38 million from RM45.22 million in the previous year’s corresponding period. Cumulative revenue increased 19% to RM628.66 million from RM529.5 million in 1HFY18.

Going forward, the group said the manufacturing and sale of garments will continue to be its major revenue contributor. 

“The group’s operating environment for the remaining quarters of FY2020 is expected to be challenging, amid global economic uncertainties. Nevertheless, both the garment and packaging businesses are expected to remain profitable during the said period,” it said. 

Magni-Tech’s share price fell four sen or 1.53% to close at RM2.57 today, giving it a market capitalisation of RM1.12 billion.