SKP Resources slips into net loss as tariffs weigh on order volumes


PETALING JAYA: SKP Resources Bhd has posted a net loss of RM37.28mil for its fourth quarter ended March 31, 2026 (4QFY26), primarily driven by moderation in order volumes received from certain customers amid implementation of tariff measures and geopolitical tensions.

This was in comparison to a net profit of RM28.72mil it made the same quarter last year.

Revenue in 4QFY26 decreased by 47.2% to RM305.12mil compared to the RM578.08mil registered in 4QFY25.

The electronics manufacturing services (EMS) group noted its gross profit margins had dropped to 2% from 9.1% in the corresponding quarter of the preceding year.

“This was on the back of underutilized manufacturing capacity, resulting in inability to effectively absorb fixed overhead costs amid subdued customers’ sentiment. The margin compression faced by the group during the quarter was in tandem with customer-driven pricing pressure and impairment loss on property plant and equipment,” it noted.

SKP Resources noted its financial performance in the upcoming financial year will remain moderate relative to the preceding year.

“The current financial year presented a challenging operating environment, amid implementation of US tariff measures. Geopolitical tensions in the Middle East further introduced significant uncertainties across the global supply chain and dampened demand for consumer electronics, a core market segment of the group,” it noted.

However, the group pointed out its healthy balance sheet and prudent low gearing position will enable it to maintain adequate liquidity and financial resilience at all times.

“We will continue to prioritise customer diversification, operational excellence and cost optimization across operations.”

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SKP Resources , tariff , geopolitical tensions ,

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