Magni-Tech reports higher 2Q net profit

PETALING JAYA: Magni-Tech Industries Bhd’s net profit for the second quarter ended Oct 31, 2025 (2Q26) rose 24.7% to RM32.25mil from RM25.87mil a year earlier, despite a slight drop in topline, supported mainly by stronger profitability in its garment segment.

The garment manufacturer’s 2Q26 revenue slipped 1.1% to RM247.04mil from RM250.83mil in 2Q25. The garment segment, which accounts for more than 95% of group earnings, saw revenue ease 0.7% to RM327.8mil from RM330.35mil due to lower sale orders.

However, the segment's profit before tax increased 23.2% to RM40.27mil from RM32.7mil in 2Q25, driven by a higher net foreign exchange gain of RM41,000 versus a net loss of RM5.87mil previously.

For the first half ended Oct 31, 2025 (1H26), Magni-Tech's revenue fell 8.1% to RM724.65mil from RM788.42mil, while net profit slipped 3.8% to RM67.84mil from RM70.51mil.

The group said garment performance is mainly influenced by labour and operating costs, foreign exchange movements, demand conditions and management’s ability to adapt.

Packaging performance, meanwhile, Magni-Tech said is affected largely by raw material and operating costs, as well as demand for its products. Magni-Tech declared a three sen dividend for 2Q26, bringing its 1H26 dividend to 6.5 sen versus 28 sen in 1H25, which included a 20 sen special dividend.