KUALA LUMPUR (Oct 19): Pantech Group Holdings Bhd's net profit fell 8.32% to RM28.42 million for the second quarter ended Aug 31, 2023 (2QFY2024), from RM31 million the year before, on a weaker manufacturing segment due to moderating exports.

Quarterly earnings per share slipped to 3.44 sen, from 3.78 sen per share for 2QFY2023. The group maintained a dividend per share of 1.5 sen for the quarter, bringing its dividends for the first half to three sen, also unchanged from last year.

The weaker manufacturing segment — comprising manufacturing of pipes and pipes fitting, and galvanising — was slightly offset by a stronger trading segment, thanks to higher deliveries to local oil and gas projects, Pantech said.

The trading segment contributed to 42.8% of Pantech’s profit before tax for the quarter, against 57.2% from the manufacturing segment.

Quarterly revenue, meanwhile, fell 7.26% to RM250.38 million, from RM269.99 million previously.

It saw a 20% decline in manufacturing revenue to RM110.62 million, while the trading segment's revenue rose 6.3% to RM139.77 million.

The weaker performance dragged Pantech’s net profit for the six months ended Aug 31, 2023 by 3.48% to RM55.4 million from RM57.4 million a year earlier, as revenue fell 8.42% to RM495.15 million from RM540.66 million.

Pantech sees robust oil prices supporting oil and gas industry spending, although it said it is watchful of the prevalent economic risks, as well as demand for oil and gas products.

“Barring further unforeseen circumstances, the group is optimistic about its overall performance for the current financial year,” it said.

Shares in Pantech rose 1.5 sen or 1.73% to 88 sen on Thursday, giving the company a market capitalisation of RM737.2 million. Year to date, the counter has risen by 23%.