KUALA LUMPUR (July 30): Texchem Resources Bhd (KL:TEXCHEM) reported its highest quarterly earnings in over four years in the second quarter ended June 30, 2026 (2QFY2026), on the back of improved revenue amid stronger showing from all its business segments.

The group’s operations include industrial, polymer engineering, food, restaurant and venture businesses.

Net profit for quarter jumped more than six-fold to RM7.97 million from RM1.28 million a year ago, as revenue rose 8.82% to RM309.46 million, from RM284.36 million, the Sushi King owner said in a bourse filing on Thursday.  

The latest quarterly net profit was the highest since 1QFY2022, when it reported RM13.08 million. Revenue also marked the group’s strongest performance since 4QFY2021, when it reported RM323.79 million.

For the first half ended June 30 (1HFY2026), its net profit surged more than five times to RM10.53 million from RM2.15 million as revenue increased 5.2% to RM596.91 million, from RM566.78 million.

No dividend was declared for the quarter.

The industrial division is its largest revenue source, contributing RM149.2 million in 2QFY2026, a 21% increase from RM123.5 million a year ago. The segment’s profit before tax more than quadrupled to RM4.2 million, supported by customers’ inventory build-up activities amid supply chain disruptions and geopolitical uncertainties, as well as contributions from new business in the medical and semiconductor segments.

The polymer engineering division posted broadly stable revenue of RM64.6 million, while profit before tax edged up to RM6.5 million in 2QFY2026, from RM6.3 million a year ago, aided by the data memory (wafer and semiconductor) segment and favourable foreign exchange movements.

The food division returned to the black with a pre-tax profit of RM1 million from a loss of RM1.6 million a year earlier, thanks to stronger fishmeal exports, higher selling prices and favourable foreign exchange effects. The segment’s revenue was 6.85% higher at RM42.4 million in 2QFY2026, from RM39.7 million.

The restaurant division saw its pre-tax profit improve 28.6% to RM1.8 million from RM1.4 million despite slightly lower revenue, benefitting from cost savings after closing loss-making outlets. Two non-performing outlets were shut during the quarter as part of operational optimisation efforts.

The venture business division more than doubled its revenue to RM2.5 million in 2QFY2026, from RM1.1 million previously, and narrowed its pre-tax loss to RM500,000, supported by stronger sales of specialised extruded sheets and TEXa products following higher orders from strategic customers.

On its prospects, the group flagged that ongoing geopolitical developments, energy price volatility, and global trade uncertainties may continue to impact business sentiment and economic activity.

However, its polymer engineering division is expected to benefit from the continued growth in the semiconductor, artificial intelligence supply chain and medical and life sciences industries.

In the industrial division, the segment will expand its presence in high-value semiconductor and medical segments while mitigating supply chain volatility from Middle East geopolitical tensions through disciplined working capital management and alternative sourcing.

For the food division, it said, will continue to emphasise operational efficiencies, shifting and expanding to more viable production sites.

On its restaurant division, the group maintains a cautious outlook amid headwinds from prudent household spending, focusing on strategic expansion and cost savings from rationalising underperforming outlets to navigate market pressures. 

Texchem's share price has retreated 19% from this year's peak of 91.5 sen on Jan 28. The stock closed unchanged at 74.5 sen on Thursday, valuing the company at RM87 million.