KUALA LUMPUR: Techbond Group Bhd (TGB) revenue slipped 4.7 per cent to RM22.6 million for the second quarter (Q2) ended Dec 31, 2021 (FY22) from RM23.7 million a year ago due to lower demand from Vietnam markets as a result of the lockdown imposed in the country.
Net profit for the quarter was RM2.6 million, up 1.4 per cent year-on-year (YoY) on the lower unrealised foreign exchange (forex) loss and tax expense incurred.
Managing director Lee Seng Thye said the current production in Malaysia continues to run smoothly at optimal capacity while the production pace over in Vietnam has picked up commendably in tandem with the reopening of the economy in the fourth quarter (Q4) of 2021.
"Utilisation rate for our game-changing upstream polymerisation plant in Vietnam has been ramping up gradually.
"Orders from our customers in Vietnam has recovered very healthily with the reopening of the economy picking up speed.
"The pent-up demand from the woodworking, paper and packaging and other industries has gained strong momentum, which we expect to sustain in the coming quarters," he said in a statement today.
Lee said that the demand and order replenishment from local customers are expected to remain firm for the domestic market.
Cumulatively, TGB's first half (1H) FY22 revenue stood at RM37.9 million versus RM45.7 million in the same period the previous year.
This was due to lower demand from both Vietnam and Malaysia markets following the lockdown imposed in the respective countries.
In tandem with softer top-line
performance, the company's net profit slipped to RM3.9 million compared to RM5.1 million in 1H FY21.
TGB's balance sheet remained healthy as it remained in a net cash position, with net cash per share of 7.5 sen as of Dec 31, 2021, backed by net assets of 29 sen per share.
"All in all, we are upbeat on the outlook of the company premised upon factors mentioned above while mindful of the prevailing challenges.
"We will continue to leverage on our solid balance sheet and prudent management to steer through the obstacles ahead," Lee said.