KUALA LUMPUR (June 23): Magni-Tech Industries Bhd (KL:MAGNI) reported an 18.9% decline in net profit for the quarter ended April 30, 2026 (4QFY2026), weighed by higher operating expenses and lower revenue from its garment business.

Net profit for 4QFY2026 fell to RM22.95 million from RM28.29 million a year earlier, while revenue slipped 7.5% to RM301.81 million from RM326.15 million.

In a Bursa Malaysia filing on Tuesday, the garment manufacturer said the performance of its garment business continues to be influenced by labour and operating costs, foreign exchange fluctuations, demand conditions and management's ability to adapt to changing market conditions.

In line with the weaker earnings, Magni-Tech declared a final dividend of two sen per share, down from three sen a year earlier.

This brought its total dividend for FY2026 to 11 sen per share, compared with 34.8 sen in FY2025, which included a special dividend of 20 sen per share. Excluding the one-off special dividend, the FY2026 payout was still lower than the previous financial year.

For the full financial year, net profit declined 12.4% to RM121.53 million from RM138.77 million, while revenue fell 5.6% to RM1.4 billion from RM1.49 billion.

The group expects a challenging financial year ending April 2027 due to global economic and geopolitical uncertainties. The 2026 Iran conflict caused higher energy, fuel, fertiliser and shipping costs, increasing inflation and slowing global economic growth.

Shares of Magni-Tech closed one sen or 0.5% higher at RM1.91 on Tuesday, giving the company a market capitalisation of RM828.8 million. The stock has fallen 9.9% over the past 12 months.