TECHBND 5289 Share Price

For the current period ended 30 June 2024, the Group’s revenue hit an all-time high of RM151.10 million from RM108.95 million last year. The 38.69% YoY increase was attributed to the abovementioned solid order flow, key industries recovery as well as MAC’s contribution. It is noteworthy to mention that this is the first time the Group’s top-line surpassed the RM150-million mark. Industrial adhesives and sealants continued to be the anchor revenue contributor, accounting for 77.17% or RM116.60 million of total revenue. Parallel with the top-line performance, the Group’s PBT soared 59.52% YoY to RM20.37 million for the period under review as compared to RM12.77 million a year ago. Moving forward, The Group has successfully penetrated several new markets while expanding our presence in existing markets. At the same time, we continue to be in active negotiations with more potential customers in various countries.

In tandem with the lower GP, the Group’s PBT too, softened by 14.7% YoY to RM13.1 million in FY2022. The decline in PBT was attributed to our meticulous efforts and prudent measures in keeping our operating costs in check. Following the resumption of cross border travelling, expanding our distribution network particularly in new markets is our high priority, with the sales and marketing team stepping up their activities in pursuing leads and prospects. At the same time, within our existing markets, we are working to increase our market share particularly in segments we are strong in – the woodworking as well as paper and packaging industries. Over in Vietnam, we shall continue to boost the production of polyvinyl acetate polymer at our polymerization facility at VSIP 2, which is one of our key raw ingredients for our industrial adhesives. As for our palm-oil based industrial adhesives project with MPOB, we will carry on our efforts to work towards feasible commercialization of the product.

Net profit rose 9.24% QoQ to RM2.83 million in the quarter under review from RM2.59
million in the immediate preceding quarter. The improvement was chiefly due to higher gain on
disposal of assets as well as unrealised forex gain.

Revenue for the Current Quarter decreased 32.19% quarter-on-quarter (“QoQ”) or RM7.25 million to RM15.28 million versus RM22.53 million in the immediate preceding quarter. The drop was primarily due to interruptions caused by the lockdown enforced in Vietnam and Malaysia. In tandem with this, PBT slipped 52.64% QoQ or RM1.96 million to RM1.77 million from RM3.73 million in the immediate preceding quarter.

PBT increased by RM0.70 million or 19.08% QoQ from RM3.68 million in the immediate preceding quarter to RM4.38 million in the Current Quarter. This was chiefly due to favourable foreign exchange in the quarter under review.

In Financial Year End 2020, the directors’ remuneration was 2.73 million. It was high compared to average in listed companies, considering the employees’ remuneration of 8.8 million and auditor’s remuneration of 103 thousands

The Group’s revenue of approximately RM17.11 million for the current quarter was approximately RM3.71 million lower as compared to the revenue reported for the immediate preceding quarter of approximately RM20.83 million. The decrease was primarily due to softer demand from overseas.