Rhong Khen International Berhad Q3 FY2026 Financial Results: Key Insights and Investor Implications

Overview of Q3 FY2026 Results

Rhong Khen International Berhad (“the Group”) has released its unaudited financial results for the quarter and nine-month period ended 31 March 2026. The results reflect a challenging operating environment, significant one-off gains, and signals of ongoing uncertainties that may impact future performance and share value.

Key Financial Highlights

• Quarterly Revenue Dip: Revenue for the current quarter declined by 21.6% to RM115.1 million compared to RM146.9 million in the previous quarter. This was mainly due to lower sales from Vietnam operations, fewer working days (Chinese New Year), and a 1.6% weakening of the USD against the RM.
• Gross Profit Impacted: Gross profit for the quarter fell by 61.1% to RM5.8 million, reflecting both lower revenue and higher production costs (due to fewer production days).
• Substantial Swing to Loss: The Group swung from a profit before tax (PBT) of RM13.3 million in the previous quarter to a loss before tax of RM6.8 million. This was largely due to the absence of a one-off gain on disposal of a subsidiary (RT Industries Company Limited, “RTI”) that boosted the previous quarter’s results, along with weaker operating performance.
• Net Loss for the Quarter: The Group recorded a net loss of RM6.9 million for the quarter, compared to a profit after tax (PAT) of RM12.1 million previously.
• Foreign Currency Effects: The Group continues to face foreign currency translation losses, reflecting ongoing volatility in exchange rates.

Nine-Months (YTD) Performance

• Revenue: RM380.6 million, down 3.5% year-on-year (YoY) from RM394.6 million. The decrease was attributed to softer demand in Malaysia and Thailand, especially in furniture and panel board operations, and the negative impact of a 7.1% weaker USD against the RM. However, this was partially offset by higher sales from Vietnam and Malaysia sawmill operations.
• Gross Profit: RM31.4 million, down 34.3% YoY, due to lower revenue, suboptimal capacity utilization at upstream plants, and lower average selling prices.
• PBT: Despite a lower gross profit, PBT increased 16.4% YoY to RM16.3 million, driven by two major one-off gains:
  • RM10.4 million gain from the disposal of a vacant freehold land (investment property).
  • RM16.1 million gain from the disposal of RT Industries Company Limited (subsidiary).

  These one-offs were partially offset by lower operating profit and higher foreign exchange losses.

• PAT: PAT for the period reached RM14.8 million, up 35.8% YoY, mainly due to the above one-off gains and lower tax provisions.

Balance Sheet and Cash Flow

• Strong Cash Position: Cash and cash equivalents stood at RM132.5 million at quarter-end.
• Lower Net Gearing: Total borrowings decreased significantly to RM5.7 million (vs RM16.4 million as at 30 June 2025), reflecting continued deleveraging and improved financial stability.
• Asset Sales: The Group completed the disposal of investment properties and a subsidiary, boosting cash flows and supporting the balance sheet.
• Net Cash Used in Operations: Operating activities recorded a net cash outflow of RM37.8 million, mainly due to increases in working capital (notably inventories and receivables).

Other Noteworthy Developments

• Treasury Shares: The company repurchased 175,800 shares during the quarter, bringing total treasury shares held to 849,700.
• No Interim Dividend: The Board did not declare any interim dividend for this quarter, which may disappoint some income-focused investors.
• No Material Litigation or Corporate Proposals: No significant legal or corporate actions were announced during or after the quarter.
• Capital Commitments: RM503,000 authorized and contracted for property, plant, and equipment as at 31 March 2026.

Operating Environment and Outlook

• Challenging Macro Backdrop: The Group highlights persistent global economic uncertainties, including geopolitical tensions, the ongoing US-China trade war, and volatility in energy and shipping costs due to Middle East conflicts. These factors are expected to keep order volumes and operating costs under pressure.
• Strategic Response: The Group is focusing on cost control, production efficiency, innovation, and market development (including new products and markets) to navigate the tough environment.
• Profitability Guidance: Barring unforeseen circumstances, the Board expects the Group to remain profitable for the full year ending 30 June 2026, despite short-term uncertainties.

Price-Sensitive and Shareholder-Relevant Issues

• One-Off Gains Distorting Underlying Performance: Investors should note that the Group’s current period profit is significantly boosted by non-recurring gains from asset and subsidiary disposals. Stripping out these items, underlying business profitability is substantially weaker.
• Demand Uncertainty and Rising Costs: The Group’s outlook statement underlines continued uncertainty and cost pressures, which may impact future earnings and share value if not mitigated.
• No Interim Dividend: Income investors should consider that no dividend was declared for this quarter.

Conclusion

Rhong Khen International Berhad’s Q3 FY2026 results present a mixed picture. While headline profit is up due to exceptional gains, core operational performance is under pressure from weaker sales, lower margins, and rising costs. The company’s strong cash position and reduced debt are positives, but the uncertain global backdrop and lack of dividend may weigh on sentiment. Investors should watch for further developments, especially regarding cost management, demand recovery, and new market initiatives.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult financial advisors before making investment decisions. The writer and publisher accept no liability for any losses incurred based on this article.

Versi Bahasa Malaysia

Keputusan Kewangan Suku Ketiga Tahun Kewangan 2026 Rhong Khen International Berhad: Analisis Terperinci Pelabur

Sorotan Keputusan Suku Ketiga 2026

Rhong Khen International Berhad (“Kumpulan”) telah mengumumkan keputusan kewangan tidak diaudit bagi tempoh suku dan sembilan bulan berakhir 31 Mac 2026. Keputusan ini mencerminkan persekitaran operasi yang mencabar, keuntungan luar biasa sekali sahaja, dan ketidaktentuan berterusan yang berpotensi memberi impak pada prestasi dan nilai saham masa depan.

Sorotan Kewangan Utama

• Pendapatan Suku Menurun: Pendapatan bagi suku semasa menurun 21.6% kepada RM115.1 juta berbanding RM146.9 juta suku sebelumnya. Penurunan ini berpunca dari penjualan lebih rendah di Vietnam, hari operasi yang kurang (Cuti Tahun Baru Cina), dan penyusutan USD berbanding RM sebanyak 1.6%.
• Untung Kasar Terjejas: Untung kasar suku ini jatuh 61.1% kepada RM5.8 juta akibat penurunan pendapatan serta kos pengeluaran lebih tinggi (disebabkan kurang hari pengeluaran).
• Kerugian Sebelum Cukai: Kumpulan beralih dari keuntungan sebelum cukai (PBT) RM13.3 juta kepada kerugian sebelum cukai RM6.8 juta, terutamanya kerana tiada keuntungan luar biasa daripada pelupusan syarikat subsidiari (RT Industries Company Limited, “RTI”) yang diperoleh suku lalu dan prestasi operasi yang lemah.
• Kerugian Bersih Suku Ini: Kumpulan mencatat kerugian bersih RM6.9 juta berbanding keuntungan selepas cukai (PAT) RM12.1 juta sebelum ini.
• Kesan Mata Wang Asing: Kumpulan terus merekodkan kerugian terjemahan mata wang asing, mencerminkan volatiliti kadar pertukaran semasa.

Prestasi Sembilan Bulan (YTD)

• Pendapatan: RM380.6 juta, menurun 3.5% berbanding tahun sebelumnya. Penurunan ini disebabkan permintaan lemah di Malaysia & Thailand dan kesan negatif penyusutan USD 7.1% berbanding RM. Namun, terdapat peningkatan jualan dari operasi Vietnam dan kilang papan gergaji Malaysia.
• Untung Kasar: RM31.4 juta, menurun 34.3% tahun ke tahun, disebabkan pendapatan lebih rendah, penggunaan kapasiti kilang yang rendah, dan harga jualan purata menurun.
• PBT: Walaupun untung kasar menurun, PBT naik 16.4% kepada RM16.3 juta didorong dua keuntungan luar biasa:
  • Keuntungan RM10.4 juta dari pelupusan tanah kosong (hartanah pelaburan).
  • Keuntungan RM16.1 juta dari pelupusan syarikat subsidiari, RTI.

  Keuntungan ini diimbangi oleh prestasi operasi yang lemah dan kerugian pertukaran mata wang lebih tinggi.

• PAT: PAT untuk tempoh ini ialah RM14.8 juta, naik 35.8%, terutamanya kerana keuntungan luar biasa dan peruntukan cukai lebih rendah.

Kedudukan Kewangan & Aliran Tunai

• Kedudukan Tunai Kukuh: Tunai dan setara tunai pada akhir suku ialah RM132.5 juta.
• Pengurangan Hutang Bersih: Jumlah pinjaman turun ketara kepada RM5.7 juta (berbanding RM16.4 juta pada 30 Jun 2025), mencerminkan kestabilan kewangan yang lebih baik.
• Pelupusan Aset: Syarikat telah menyelesaikan pelupusan hartanah pelaburan dan syarikat subsidiari, menyokong aliran tunai dan kedudukan kewangan.
• Aliran Tunai Operasi Negatif: Terdapat aliran keluar tunai bersih operasi RM37.8 juta, terutamanya kerana peningkatan stok dan penghutang perdagangan.

Perkembangan Penting Lain

• Saham Perbendaharaan: Syarikat telah membeli balik 175,800 unit saham, menjadikan jumlah saham perbendaharaan kepada 849,700 unit.
• Tiada Dividen Interim: Lembaga tidak mengisytiharkan dividen interim untuk suku ini, yang mungkin mengecewakan pelabur berorientasikan pendapatan.
• Tiada Litigasi atau Cadangan Korporat Material: Tiada tindakan undang-undang atau korporat penting sepanjang suku atau selepasnya.
• Komitmen Modal: RM503,000 diluluskan dan dikontrakkan untuk harta, loji dan peralatan sehingga 31 Mac 2026.

Persekitaran Operasi & Prospek

• Cabaran Makroekonomi: Kumpulan menyorot ketidaktentuan ekonomi global berterusan, konflik geopolitik, perang perdagangan AS-China, serta kos tenaga dan pengangkutan yang tidak menentu. Ini dijangka akan terus menekan volum pesanan dan kos operasi.
• Tindak Balas Strategik: Kumpulan menekankan kawalan kos, kecekapan pengeluaran, inovasi, dan pembangunan pasaran baru untuk menghadapi persekitaran mencabar ini.
• Panduan Keuntungan: Dengan syarat tiada keadaan luar jangka, Lembaga percaya Kumpulan akan terus mencatat keuntungan bagi tahun kewangan berakhir 30 Jun 2026.

Isu Sensitif Harga & Relevan kepada Pemegang Saham

• Keuntungan Luar Biasa Mengaburi Prestasi Asas: Pelabur perlu maklum bahawa keuntungan Kumpulan dipacu oleh keuntungan sekali sahaja. Tanpa keuntungan ini, keuntungan operasi teras adalah jauh lebih lemah.
• Ketidaktentuan Permintaan & Kos Meningkat: Kenyataan prospek Kumpulan menegaskan ketidaktentuan dan tekanan kos, yang boleh menjejaskan pendapatan dan nilai saham akan datang jika tidak ditangani dengan baik.
• Tiada Dividen Interim: Pelabur berorientasikan pendapatan perlu mempertimbangkan ketiadaan dividen suku ini.

Kesimpulan

Keputusan suku ketiga FY2026 Rhong Khen International Berhad menunjukkan prestasi campuran. Walaupun keuntungan utama meningkat hasil keuntungan luar biasa, prestasi operasi asas tertekan akibat penjualan lebih rendah, margin menipis, dan kos meningkat. Kedudukan tunai yang kukuh dan pengurangan hutang adalah positif, namun persekitaran global tidak menentu dan ketiadaan dividen mungkin menekan sentimen. Pelabur dinasihatkan memantau perkembangan lanjut, khususnya dalam pengurusan kos, pemulihan permintaan, dan inisiatif pasaran baru.

Penafian: Artikel ini untuk tujuan maklumat sahaja dan bukan nasihat pelaburan. Pelabur harus membuat kajian sendiri atau mendapatkan nasihat pakar kewangan sebelum membuat sebarang keputusan pelaburan. Penulis dan penerbit tidak bertanggungjawab atas sebarang kerugian berdasarkan artikel ini.

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