GLOTEC 5220 Share Price

The Group’s revenue for the current financial year ended 30 June 2024 decreased by RM21 million to RM190 million. In tandem with the decline in revenue, the Group’s net profit decreased by RM2.6 million, from RM10.1 million in the previous financial year to RM7.5 million in the current financial year. This is due to lower revenue from certain DIvision/Segment, lower foreign exchange gains and higher tax expense from PMST. Moving Forward, the Group’s businesses remain vigilant of its costs and sustainability to mitigate the impact of slower growth and demand. In addition, action plans are in place to actively strengthen customer relationships and increase market share especially for the Automotive division.

The Group’s net profit was relatively consistent at RM3.0 million quarter on quarter. The IMS segment however, registered a decrease of RM1.0 million in its net profit due to a decline in the net profit of RM1.2 million from the PMST division, which was attributable to foreign exchange losses, unfavourable product mix and higher labour costs. The Automotive division however, in tandem with its higher revenue, recorded an increase of RM0.2 million in its net profit. The net loss from the Resources segment narrowed from RM0.7 million to RM37,000, in line with the increase in its revenue and favourable fair vale changes on biological assets.

The Group’s revenue increased from RM161.1 million to RM184.3 million, underpinned by the increased in revenue of both the Integrated Manufacturing Services and Resources segments. The Resources segment’s revenue increased as a result of higher oil palm fresh fruit bunches prices and FFB production. The Group’s IMS segment should continue to grow in the next financial year as automotive sales is expected to be robust and buoyed by strong demand for high technology, 5G and life sciences/medical components. We are however cautiously optimistic on the Resources segment as its performance will depend largely on the market-driven FFB prices. For the Energy segment, we are hopeful that the segment will continue to de-risk its exploration assets and carry on implementing its development activities in order to achieve commercialisation soon.

In Financial Year End 2020, the directors’ remuneration was 4.14 million. It was fair compared to average in listed companies, considering the employees’ remuneration of 31.9 million and auditor’s remuneration of 355 thousands

Comparing quarter on quarter, the Group’s revenue decreased from RM49.1 million to RM42.4 million due to lower demand as a result of the COVID-19 pandemic and decrease in the FFB production. The Group registered a decline in its net profit of RM1.7 million in the previous quarter to a net loss of RM0.4 million for the current quarter. Both the IMS and Resources segments recorded lower net results in line with its lower revenue.