KUALA LUMPUR (Aug 13): Waste management and recycling solutions provider Tex Cycle Technology (M) Bhd (KL:TEXCYCL) saw its net profit halved to RM2.51 million in the second quarter ended June 30, 2024 (2QFY2024) from RM5.07 million a year earlier, due to the absence of fair value gains on quoted securities and unit trusts, as well as unrealised foreign exchange gains.

Its revenue for the quarter declined 2.57% to RM8.26 million compared to RM8.47 million previously, Tex Cycle's bourse filing showed.

No dividends were declared for the quarter.

Despite the lackluster performance in 2Q, Tex Cycle’s net profit for the first half ended June 30, 2024 (1HFY2024) climbed 33.7% to RM9.11 million from RM6.81 million a year earlier, on the back of 7.6% drop in revenue to RM16.25 million from RM17.59 million previously.

Shares in Tex Cycle slipped two sen or 1.6% to RM1.23 on Tuesday, valuing the company at RM334.11 million. On a year-to-date basis, the counter has seen its share price surged more than 78%.

Moving ahead, Tex Cycle foresees “more positive signs in the market” on the back of the scheduled waste management business as the Malaysian government, through the Ministry of Environment, pushes for compliance and promotes renewable energy to meet the 2050 net-zero target.

It added that the group’s rejuvenated board has “more appetite and is open to undertaking mergers and acquisitions” for the benefit of its stakeholders.

“In the recent quarter, Tex Cycle successfully raised funds through a private placement aimed at supporting the Sabah integrated waste management facility. The company also expanded its service offerings by acquiring the Meridian Group of Companies, broadening its capabilities to include chemical processing and wastewater treatment, among others.

“Additionally, the biogas power plant under GLT BP Power Sdn Bhd commenced operations in April, marking a significant step in sustainable energy. A new collaboration with Econas Resource to Energy also promises to enhance Tex Cycle's scheduled waste management operations, demonstrating ongoing improvements across the group,” said Tex Cycle group CEO Gary Dass Anthony Francis in a separate statement.

Last month, The company proposed to transfer its listing from the ACE Market of Bursa Malaysia to the Main Market.