KUALA LUMPUR (Dec 3): Magni-Tech Industries Bhd (KL:MAGNI), another cash-rich company on Bursa Malaysia, has declared a special dividend with the release of its latest second quarter results, which saw net profit rising 18.74% on higher revenue.

It plans to pay a special dividend of 20 sen per share, along with a second interim dividend of three sen per share — as opposed to an interim payout of 2.2 sen in the corresponding 2Q last year — to shareholders on Dec 27. This raises its total payout for the first six months of its FY2025 to 28 sen per share, higher than the five sen it paid for the same period in FY2024, and the total 11.8 sen it paid for FY2024.

The garment and plastic packaging manufacturer's net cash pile amounted to RM528.3 million as at end-October. This translates to a net cash per share of roughly RM1.21.

In a filing with the exchange, Magni-Tech said the higher second interim dividend was mainly "due to higher profit attributable to shareholders of the company" in its second quarter ended Oct 31, 2024 (2QFY2025).

The group recorded a net profit of RM25.87 million in 2QFY2025, or an earnings per share of 5.95 sen, up from RM21.79 million in 2QFY2024 or 5.03 sen per share, largely driven by stronger earnings from its garment business, which was partly offset by lower performance in its flexible plastic packaging and corrugated carton segments, which were dragged by higher raw material costs.

Revenue jumped 22% to RM350.83 million from RM287.6 million.

Profit before tax (PBT) from the garment segment increased by 20.2% to RM32.7 million from RM27.21 million, driven by a 24.1% increase in revenue to RM330.35 million from RM266.21 million previously, primarily due to higher sales. In contrast, PBT from its packaging segment fell 21.4% as revenue dipped 4.3% while raw material costs climbed.

For the first six months of FY2025 (6MFY2025), the group’s net profit jumped 29.35% to RM70.51 million from RM54.51 million, while revenue rose 28.83% to RM788.42 million from RM611.98 million.

Magni-Tech said it is cautiously optimistic about its business outlook for the remaining quarters of FY2025 despite the slow global economic recovery, supply chain disruptions in the Red Sea and currency fluctuations.

The group said it will remain focused on cost optimisation through automation, modernisation and process enhancements to stay resilient and relevant.

Shares of Magni-Tech closed unchanged at RM2.70 on Tuesday, valuing it at RM1.17 billion. The stock has climbed 84 sen or over 45% since the start of the year.