KUALA LUMPUR (April 24): Pantech Global Bhd announced a special dividend of one sen after its fourth quarter net profit jumped 373% from the previous quarter, driven by a gain on bargain purchase and two months of earnings from newly acquired companies.

The profit surge was mainly from a RM52.39 million gain after Pantech Global bought two companies at a bargain from its parent Pantech Group Holdings, which owns 69.15% of the company.

A gain on bargain purchase is profit made when a company buys another for less than its actual value.

The company declared its first-ever dividends — a 2.0 sen interim and 1.0 sen special dividend —  totalling 3.0 sen per share, to be paid on June 13.

The company's net profit surged to RM59.01 million in the fourth quarter ended Feb 28, 2025 (4QFY2025), from RM12.47 million in 3QFY2025, even though revenue dipped 32.30% to RM82.58 million compared to RM121.98 million, its bourse filing showed.

This is the company's second interim financial report and there are no comparative figures for the previous year's corresponding quarter, Pantech Global said in a bourse filing on Thursday.

"Global demand for the group’s products remains resilient, underpinned by sustained activities in industrial production, construction, and infrastructure development which supports the consumption of butt weld pipe fittings and stainless steel welded pipes," the company said.

The company’s orders from the United States, an established export market for the company, remain stable. Its financial performance remains unaffected by the US’ reciprocal tariffs as this is borne by US importers, it noted.

At Thursday's market close, Pantech Global's shares were unchanged at 51.5 sen, valuing the company at RM437.8 million.