KUALA LUMPUR: Seng Fong Holdings Bhd
returned to the black in the first quarter ended Sept 30, 2026 (1QFY27), posting a net profit of RM12.38mil compared with a net loss of RM5.06mil a year earlier, driven by higher sales volume, selling prices and improved margins.
Revenue jumped 41.1% to RM330.26mil from RM234.05mil in the previous corresponding quarter.
In a filing with Bursa Malaysia, the rubber processor said sales volume rose 14.5% to 36,429 metric tonnes from 31,792 metric tonnes, while average selling prices increased 23.1% to RM9,066 per metric tonne.
Gross profit stood at RM22.25mil, representing a margin of 6.7%, compared with a gross loss of RM1.33mil a year earlier.
The improvement was attributed to higher sales volume and selling prices, increased contributions from premium-grade products, improved production efficiency through automation and cost savings from in-house logistics.
Earnings per share improved to 1.72 sen from a loss per share of 0.70 sen previously.
Seng Fong declared a first interim dividend of one sen per share, amounting to approximately RM7.22mil, payable on Dec 24, 2026.
For the remainder of FY2027, the group’s performance may be influenced by natural rubber selling prices, raw material costs, customer demand and foreign exchange movements.
“The Board remains cautiously optimistic about the group’s prospects for the financial year ending June 30, 2027,” it said.
The group is also progressing with plans to establish rubber processing operations in Ghana following its acquisition of a 51% stake in Rainbow Rubber Buying Center Ltd in September.
It plans to inject about US$2.04mil, or RM8.32mil, into the Ghanaian subsidiary to fund the development of a rubber processing facility.
Meanwhile, Seng Fong expects to complete the installation of smart rubber manufacturing equipment at Factory 3 and a battery energy storage system by the end of 2026 to improve operational efficiency and manage energy costs.
