Pantech’s 2Q net profit rises 42.76% to RM15m, declares one sen dividend

Pantech’s 2Q net profit rises 42.76% to RM15m, declares one sen dividend
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KUALA LUMPUR (Oct 21): Pantech Group Holdings Bhd’s net profit rose 42.76% to RM15.31 million for the second quarter ended Aug 31, 2021 (2QFY22), from RM10.72 million a year ago, mainly due to optimised trading and manufacturing operations, robust export demand and higher product prices.

Its quarterly revenue remained flattish at RM136.49 million, against RM136.31 million a year ago, according to the group’s filing to Bursa Malaysia.

Pantech has declared a second interim single-tier dividend of one sen per share for the quarter, bringing the total dividend declared thus far for the financial year ending Feb 28, 2022 to 1.5 sen. The dividend will be paid on Dec 23, 2021.

For the first half ended Aug 31, 2021, the group’s net profit surged close to six-fold to RM30.5 million from RM5.17 million a year earlier, while its revenue climbed 31.35% to RM284.99 million from RM216.97 million a year earlier.

According to the group, both its trading and manufacturing divisions registered higher revenue and profit in the second quarter and first half, mainly due to optimised operations to meet robust export demand compared to partial operation restricted by movement control order imposed by the government last year.

A better product mix and higher product price have also contributed higher segment profit.

The group said the current Covid-19 vaccine roll-out around the world and Malaysia is expected to bring positive impact to business confidence and in turn, improved economic activities that lead to projected economic recovery and positive oil demand.

“Thus, the group believes the demands for our products will improve in both domestic and international markets,” it noted.

It added that the group will prudently continue to focus on its existing revenue generating businesses and seek opportunities to grow its businesses, both local and overseas, by enhancing its competitiveness as the major pipes, valves and fittings solutions provider to the oil and gas industries, related upstream and downstream industries.

“Barring further unforeseen circumstances, the group is optimistic on its overall performance for the current financial year in view of rising oil and gas prices and the availability of Covid-19 vaccines,” it said.

Pantech closed 0.5 sen or 0.81% lower at 61.5 sen, valuing the group at RM496.75 million.

Joyce Goh