EITA Resources Berhad Announces Results for Financial Quarter Ended 31 March 2026
Key Financial Highlights
- Revenue Growth: EITA Resources Berhad reported a revenue of RM94.4 million for Q2 2026, up 6.0% from RM89.1 million in Q2 2025. The increase was largely driven by the High Voltage System segment and Marketing & Distribution, offset by declines in Manufacturing and Services.
- Profit Before Tax (PBT) Decline: Despite higher revenue, PBT fell by 17.0% to RM3.7 million from RM4.4 million in the previous year’s quarter. Cumulatively, PBT dropped sharply by 59.7% to RM6.2 million for the first half of FY2026 versus RM15.4 million in FY2025.
- Net Profit and Earnings Per Share (EPS): Net profit attributable to owners was RM2.6 million for the quarter, down 25.8%. Basic EPS was 0.85 sen, a 25.4% drop from 1.14 sen a year ago. For the first half, EPS fell 67% to 1.40 sen, reflecting weaker profitability.
- Segmental Performance:
- High Voltage System: Revenue surged 80.5% in the quarter, and segment turned profitable with RM58k PBT vs RM1.7 million LBT in prior year. Cumulative LBT reduced by 42.8%.
- Manufacturing: Revenue dropped 21.5% and recorded a loss before tax (LBT) of RM2.1 million. Cumulative loss widened to RM4.3 million vs RM3.1 million PBT last year, mainly due to higher provisions for doubtful debts and stock loss.
- Marketing & Distribution: Revenue up 11.1% but PBT down 21.0%, impacted by higher distribution expenses and provisions for doubtful debts.
- Services: Revenue decreased 8.8% and PBT was down 11.1% due to higher admin costs.
- Balance Sheet and Cash Flow:
- Net assets per share declined to RM0.83 from RM0.84 in September 2025.
- Cash and cash equivalents fell to RM60.4 million from RM65.4 million at the start of the year. Net cash outflow for the period was RM3.6 million, mainly due to repayment of borrowings and dividend payments.
- Borrowings reduced substantially from RM58.0 million to RM42.7 million, reflecting deleveraging.
- Dividend Announcements:
- A first interim single-tier dividend of 1.0 sen per share has been declared for FY2026, payable on 8 July 2026. This is lower than last year’s 1.5 sen.
- A second interim dividend of 1.5 sen per share was paid on 31 December 2025 for FY2025.
- Tax Matters: Effective tax rate for the period was 46%, significantly higher than the statutory 24%, due to non-recognition of deferred tax assets from losses in High Voltage System segment and non-deductible expenses.
- Financial Instruments and Derivatives: Outstanding forward exchange contract derivatives totalled RM69.6 million with net liabilities of RM876k, indicating active hedging against forex risks.
- Contingent Liabilities: Corporate guarantees given for banking facilities stand at RM469.2 million, and performance guarantees at RM47.5 million.
- Capital Commitments: Outstanding commitments for acquisition of property, plant & equipment total RM1.37 million.
- Related Party Transactions: Significant related transactions with CTL Automation, Sigriner Automation, QL Figo, and Boilermech Sdn Bhd were disclosed, including purchases, sales, and management services. Notably, purchases from Sigriner Automation (MFG) Sdn Bhd totalled RM2.7 million.
Important Shareholder Information & Potential Price Sensitivities
- Profitability Concerns: The sharp drop in profit before tax and net profit, especially within the Manufacturing segment, may raise concerns about future earnings and lead to a reassessment of share valuation.
- Dividend Reduction: The reduction in interim dividend (from 1.5 sen to 1.0 sen) signals a cautious stance, possibly reflecting tighter cash flow and profit outlook.
- Segment Turnaround: The High Voltage System segment’s return to profitability after previous losses is a positive, but wider losses in Manufacturing offset this gain.
- High Effective Tax Rate: The elevated tax expense (46%) due to non-recognition of deferred tax assets could continue to weigh on net profits if segment losses persist.
- Deleveraging: Substantial reduction in borrowings may improve future interest expense and financial stability, but cash outflows have reduced liquidity.
- Global Risks: Management highlights ongoing Middle East conflict and global uncertainties causing inflationary pressures and supply chain disruptions. Although direct exposure is minimal, cost control measures are being implemented.
- Guidance: The Board remains cautiously optimistic about the next quarter, supported by current order book and ongoing projects, but warns of possible headwinds.
Other Notable Points
- No material litigation, corporate proposals, or changes in group structure during the quarter.
- No profit forecast was issued for the period.
- Accounting standards changes (MFRS 121 amendments) have no material impact.
Conclusion
EITA Resources Berhad’s Q2 2026 results reflect a mixed outlook. While revenue has grown and the High Voltage System segment has returned to profitability, overall profits are sharply down, especially due to sustained losses in Manufacturing and increased provisions for doubtful debts and stock loss. The reduction in dividend and higher effective tax rate are other cautionary signals. Investors should monitor ongoing operational improvements, cost control initiatives, and the execution of the order book amid global uncertainties. The results and management’s outlook may influence the share price in the near term.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Please consult a licensed financial advisor before making investment decisions. All information is based on EITA Resources Berhad’s unaudited interim financial report for the period ended 31 March 2026.
Versi Bahasa Malaysia
EITA Resources Berhad Mengumumkan Keputusan Suku Kewangan Berakhir 31 Mac 2026
Sorotan Kewangan Utama
- Pertumbuhan Pendapatan: EITA Resources Berhad mencatatkan pendapatan RM94.4 juta untuk suku kedua 2026, meningkat 6.0% berbanding RM89.1 juta pada suku yang sama tahun sebelumnya. Kenaikan didorong oleh segmen Sistem Voltan Tinggi dan Pemasaran & Pengedaran, namun segmen Pembuatan dan Perkhidmatan menurun.
- Penurunan Keuntungan Sebelum Cukai (PBT): Walaupun pendapatan meningkat, PBT turun 17.0% kepada RM3.7 juta daripada RM4.4 juta. Secara kumulatif, PBT jatuh 59.7% kepada RM6.2 juta untuk separuh pertama FY2026 berbanding RM15.4 juta FY2025.
- Keuntungan Bersih dan EPS: Keuntungan bersih kepada pemilik syarikat RM2.6 juta, turun 25.8%. EPS asas 0.85 sen, turun 25.4%. Untuk separuh pertama, EPS menurun 67% kepada 1.40 sen.
- Pencapaian Segmen:
- Sistem Voltan Tinggi: Pendapatan melonjak 80.5%, segmen kembali untung RM58k PBT berbanding LBT RM1.7 juta tahun lalu. LBT kumulatif turun 42.8%.
- Pembuatan: Pendapatan turun 21.5%, LBT RM2.1 juta. LBT kumulatif RM4.3 juta vs PBT RM3.1 juta tahun lalu, disebabkan peruntukan keraguan hutang dan stok rosak.
- Pemasaran & Pengedaran: Pendapatan naik 11.1%, PBT turun 21.0% akibat perbelanjaan distribusi dan keraguan hutang.
- Perkhidmatan: Pendapatan turun 8.8%, PBT turun 11.1% kerana kos pentadbiran meningkat.
- Kedudukan Kewangan & Aliran Tunai:
- Aset bersih sesaham turun ke RM0.83 dari RM0.84 (September 2025).
- Tunai dan setara tunai turun ke RM60.4 juta dari RM65.4 juta. Aliran tunai bersih keluar RM3.6 juta, kebanyakannya untuk pembayaran balik pinjaman dan dividen.
- Pinjaman dikurangkan ketara dari RM58.0 juta ke RM42.7 juta.
- Pengumuman Dividen:
- Dividen interim pertama 1.0 sen sesaham diisytihar untuk FY2026, dibayar pada 8 Julai 2026 (turun dari 1.5 sen tahun lalu).
- Dividen interim kedua 1.5 sen dibayar pada 31 Disember 2025 untuk FY2025.
- Isu Cukai: Kadar cukai efektif 46%, jauh lebih tinggi dari kadar statutori 24% kerana tiada pengiktirafan aset cukai tertunda dari kerugian segmen Sistem Voltan Tinggi dan perbelanjaan tidak boleh ditolak cukai.
- Instrumen Kewangan & Derivatif: Kontrak pertukaran hadapan berjumlah RM69.6 juta dengan liabiliti bersih RM876k, mencerminkan aktiviti lindung nilai risiko forex.
- Liabiliti Kontinjen: Jaminan korporat untuk kemudahan bank RM469.2 juta, jaminan prestasi RM47.5 juta.
- Komitmen Modal: Komitmen tertunggak untuk pembelian aset RM1.37 juta.
- Transaksi Pihak Berkaitan: Transaksi utama dengan CTL Automation, Sigriner Automation, QL Figo dan Boilermech Sdn Bhd termasuk pembelian, jualan dan perkhidmatan pengurusan. Pembelian dari Sigriner Automation RM2.7 juta.
Maklumat Penting Pemegang Saham & Potensi Sensitiviti Harga
- Isu Keuntungan: Penurunan mendadak PBT dan keuntungan bersih, terutama dalam segmen Pembuatan, mungkin menimbulkan kebimbangan mengenai prospek keuntungan dan penilaian saham.
- Pengurangan Dividen: Dividen interim yang lebih rendah menunjukkan sikap berhati-hati, mungkin disebabkan aliran tunai dan prospek keuntungan yang lebih ketat.
- Pulih Segmen: Segmen Sistem Voltan Tinggi kembali untung, namun kerugian Pembuatan makin meluas.
- Kadar Cukai Tinggi: Kadar cukai tinggi boleh terus menekan keuntungan bersih jika kerugian segmen berterusan.
- Pengurangan Pinjaman: Pengurangan pinjaman besar boleh memperbaiki kestabilan kewangan masa depan, tetapi aliran tunai keluar mengurangkan kecairan.
- Risiko Global: Pengurusan memaklumkan konflik Timur Tengah dan ketidakpastian global menyebabkan tekanan inflasi dan gangguan rantaian bekalan. Pendedahan langsung kecil, namun kawalan kos dilaksanakan.
- Panduan: Lembaga berhati-hati optimistik untuk suku seterusnya, disokong buku pesanan semasa dan projek berjalan, namun memberi amaran kemungkinan cabaran.
Poin Penting Lain
- Tiada litigasi material, cadangan korporat, atau perubahan struktur kumpulan.
- Tiada ramalan keuntungan diterbitkan.
- Perubahan piawaian akaun (pindaan MFRS 121) tiada impak material.
Kesimpulan
Keputusan Q2 2026 EITA Resources Berhad menunjukkan prospek bercampur. Walaupun pendapatan meningkat dan segmen Sistem Voltan Tinggi kembali untung, keuntungan keseluruhan turun ketara, terutamanya akibat kerugian berterusan dalam Pembuatan dan peruntukan keraguan hutang dan stok rosak. Pengurangan dividen dan kadar cukai tinggi juga menjadi isyarat berhati-hati. Pelabur wajar memantau penambahbaikan operasi, inisiatif kawalan kos dan pelaksanaan buku pesanan di tengah-tengah ketidakpastian global. Keputusan ini dan pandangan pengurusan mungkin mempengaruhi harga saham dalam masa terdekat.
Penafian
Artikel ini adalah untuk tujuan maklumat sahaja dan tidak merupakan nasihat pelaburan. Sila dapatkan nasihat daripada penasihat kewangan berlesen sebelum membuat keputusan pelaburan. Semua maklumat berdasarkan laporan kewangan interim tidak diaudit EITA Resources Berhad untuk tempoh berakhir 31 Mac 2026.
