KUALA LUMPUR (July 30): Pantech Group Holdings Bhd (KL:PANTECH) saw its first quarter net profit more than halve to RM10.93 million from RM26.27 million a year earlier, due to lower contributions from its trading and manufacturing segments, as well as reduced revenue.
Revenue for the first quarter ended May 31, 2025 (1QFY2026) dropped 13.68% to RM220.74 million from RM255.72 million in 1QFY2025, primarily dragged by lower topline from the trading segment, its Wednesday (July 30) bourse filing showed.
Despite the reduced earnings, the company declared a special interim dividend of two sen per share, with the entitlement and payment dates to be announced later.
According to Pantech, its trading segment's revenue in 1QFY2026 dropped 35.5% to RM88.09 million from RM136.61 million in 1QFY2025, which led to the segment's profit before tax (PBT) falling 41.2% to RM10.27 million from RM17.48 million. Pantech blamed this on lower sales from the local oil and gas sector and other industries.
Its manufacturing segment also posted a lower PBT of RM14.98 million, down 21% from RM18.97 million in the previous year, despite revenue rising 11.4% to RM132.65 million from RM119.11 million. The reduced PBT was mainly due to lower selling prices from the stainless steel manufacturing division and unfavourable foreign exchange rate movements.
Looking ahead, the group is anticipating sustained demand for its products in both domestic and international markets, driven by increased investments from oil majors in facilities maintenance, asset integrity and infrastructure upgrades.
It also plans to keep managing risks proactively by controlling costs and making operations more efficient.
To deal with ongoing global economic challenges like geopolitical tensions, changing trade policies and supply chain disruptions, it will also make the most of its widespread market presence and deep industry knowledge.
Pantech's shares closed unchanged at 68 sen on Wednesday, valuing the company at RM582 million. The counter has declined 26.5% year to date.