KUALA LUMPUR (May 29): SKP Resources Bhd (KL:SKPRES) saw its fourth-quarter results swing into the red, hit by weaker customer orders, margin compression and a RM14 million impairment loss on property, plant and equipment.

The electronics manufacturing services (EMS) provider posted a net loss of RM37.28 million for its fourth quarter ended March 31, 2026 (4QFY2026), compared with a net profit of RM28.73 million a year earlier, its bourse filing on Friday showed.

Quarterly revenue fell 47.22% to RM305.12 million from RM578.09 million a year ago, mainly due to lower order volumes from certain customers amid tariff measures and geopolitical tensions in the Middle East.

Gross margin narrowed to 2% from 9.1%, driven by underutilised manufacturing capacity, resulting in an inability to effectively absorb fixed overhead costs, the group said.

Following the weak quarter, the group’s net profit for the full FY2026 fell 71.33% to RM33.55 million — its lowest since FY2014 — from RM117.03 million in FY2025. Annual revenue dropped 18.44% to RM1.81 billion from RM2.22 billion.

SKP Resources expects its financial performance in the upcoming year to remain moderate, relative to its recently concluded FY2026.

To mitigate the challenging operating environment, the group said it will continue to focus on customer diversification, operational excellence and cost optimisation.

SKP Resources closed 5.97% or two sen higher at 35.5 sen on Friday, valuing the group at RM555 million.  Year to date, the stock has fallen 36%.