KUALA LUMPUR (Oct 21): ES Ceramics Technology Bhd (KL:ESCERAM) started its financial year ending May 31, 2026 (FY2026) on a strong footing, with its net profits rising 80.5% in the first quarter ended Aug 31, 2025.

Net profits for the quarter stood at RM4.17 million, compared with RM2.31 million a year ago, primarily driven by its building materials division.

Revenue for the quarter rose 11.9% to RM131.8 million from RM117.8 million in 1QFY2024, boosted by higher demand in the building materials segment, despite 40.72% lower revenue in the manufacturing division.

The group did not declare any dividend during the quarter.

In a filing with Bursa Malaysia on Tuesday (Oct 21), the group’s building materials division is shifting its focus towards executing existing orders rather than securing new ones to improve margins amidst rising costs and preserving healthy cash flow.

It also noted that the division is also expanding its presence in Johor, where property activity has accelerated in anticipation of the Johor-Singapore Rapid Transit System (RTS) link and the Johor-Singapore Special Economic Zone (JS-SEZ) in the Iskandar region.

Meanwhile, the overcapacity in the glove-making industry which brought intense pricing competition has continued to weigh on the group’s manufacturing division, which saw deeper losses of RM1.17 million during the quarter from a pre-tax loss of RM0.12 million a year earlier.

“The group will continue to focus on prudent procurement, cost optimisation and operational efficiency initiatives to counter the ever-challenging period of uncertainty,” said the group.

Shares of ES Ceramic closed up by 5% to 10.5 sen at Tuesday's market close, giving the company a market value of RM74.2 million.