Texchem Resources Bhd 2026 Q2 Financial Results: Revenue, Profit Growth & Segment Analysis

Texchem Resources Berhad Delivers Strong Earnings Growth in First Half 2026: Robust Segment Performance and Strategic Initiatives Pay Off

Key Highlights from Q2 and H1 2026 Financial Results

Texchem Resources Berhad (“Texchem” or “the Group”) has delivered a set of robust results for the quarter and half-year ended 30 June 2026. The Group posted significant improvements in revenue and profitability, driven by notable performances in its Industrial, Polymer Engineering, and Restaurant Divisions. Investors should pay close attention to these results amidst ongoing strategic initiatives and market headwinds.

Revenue Growth: The Group recorded a revenue of RM309.5 million in Q2 2026, representing an 8.8% increase compared to the same quarter last year. For the first half of 2026, revenue stood at RM596.9 million, up by 5.3% year-on-year.
Surge in Profitability: Profit before tax (PBT) soared by 126.6% year-on-year to RM12.0 million in Q2 2026. For H1 2026, PBT was RM18.0 million, up by 78.2%, mainly due to stronger contributions from Industrial, Restaurant, and Polymer Engineering Divisions.
Net Profit and EPS: Profit attributable to owners of the Company increased by more than fivefold to RM7.96 million for Q2 and amounted to RM10.53 million for H1 2026. Basic and diluted earnings per share (EPS) for Q2 2026 stood at 6.83 sen (Q2 2025: 1.09 sen), and for H1 2026 at 9.01 sen (H1 2025: 1.83 sen).
Operating Profit: Operating profit in Q2 2026 was RM16.5 million (Q2 2025: RM10.7 million), representing a 54% increase. For H1 2026, operating profit rose 31.3% to RM27.3 million.

Segmental Performance Analysis

Industrial Division: Revenue grew to RM149.5 million in Q2 2026 (Q2 2025: RM123.5 million). PBT jumped to RM4.2 million (Q2 2025: RM1.0 million), supported by customers’ inventory build-ups amid supply chain disruptions, new business in medical and semiconductor segments, and market share gains.
Polymer Engineering Division: Revenue was stable at RM64.6 million, while PBT rose to RM6.5 million (Q2 2025: RM6.3 million), driven by strong performance in the semiconductor/data memory segment and favourable forex movements.
Food Division: Revenue improved to RM42.4 million (Q2 2025: RM39.7 million). PBT turned positive at RM1.0 million after recording a loss before tax of RM1.6 million in Q2 2025, mainly due to robust fishmeal exports at higher selling prices and currency gains. Notably, the Group ceased operations at Texchem Marine Labutta Limited as part of rationalisation, potentially trimming future losses.
Restaurant Division: Revenue was RM70.4 million, slightly lower than last year, but PBT improved to RM1.8 million (Q2 2025: RM1.4 million) due to cost savings from closing loss-making outlets. Two more outlets were closed in Q2 2026 for operational optimisation.
Venture Business Division: Revenue more than doubled to RM2.5 million, and losses narrowed due to improved sales of specialised extruded sheets and TEXa products.

Balance Sheet and Financial Position

Stronger Equity Base: Total equity attributable to owners rose to RM196.8 million as at 30 June 2026 (31 Dec 2025: RM188.3 million), mainly due to profit generation, offset by adverse forex translation reserves.
Borrowings: Total borrowings increased to RM239.7 million (31 Dec 2025: RM214.1 million) due to higher trade financing and term loans for capex. This increase could impact the Group’s future interest expenses and gearing ratios, which investors should monitor.
Cash Flow: Net cash from operating activities dropped sharply to RM3.1 million (H1 2025: RM40.1 million), mainly due to higher working capital requirements. Net cash used in investing activities was RM22.0 million (H1 2025: RM33.9 million), reflecting lower outflows for acquisition. Net cash used in financing activities declined to RM3.1 million, attributable to higher term loan drawdowns and lower repayments.

Capital Management and Shareholder Actions

Share Buybacks and Capital Reduction: The Company repurchased 585,300 shares at an average cost of RM0.7639 per share and cancelled 9,664,600 treasury shares, reducing its issued and paid-up capital to 116,708,135 shares. Such actions may influence share price by supporting EPS and potentially signalling management’s confidence in the Company’s prospects.
No Dividend Declared: No interim dividend was declared for the six months ended 30 June 2026.

Corporate Actions, Litigation & Commitments

No Material Litigation or Corporate Proposals: There were no material litigation cases or pending corporate proposals as at 24 July 2026.
Capital Commitments: RM5.4 million for property, plant, and equipment contracted but not provided for as at 30 June 2026.

Outlook and Prospects

The Group adopts a cautious yet optimistic outlook amidst volatility in energy prices, inflation, and trade uncertainties. The Industrial and Polymer Engineering Divisions are expected to benefit from growth in the global semiconductor and medical sectors, while the Restaurant Division will focus on rationalising outlets to improve profitability. The Food Division is shifting production to more viable sites following the closure of underperforming operations.
IMF forecasts Malaysia’s GDP growth at 4.7% for 2026, which may support further expansion in Texchem’s key markets. However, investors should be aware of potential challenges from global economic uncertainties and supply chain disruptions.

Shareholder Considerations & Potential Price Sensitive Information

Turnaround in Profitability: The marked turnaround in profitability, especially in the Food and Restaurant Divisions, and the closure of loss-making operations are positive developments that could support share price re-rating.
Capital Actions: Share buybacks and capital reduction may enhance shareholder value and market perception of the stock.
Borrowing Increase: The rise in borrowings requires monitoring for any impact on future interest costs and financial leverage.
Operational Optimisation: Continued efforts to rationalise underperforming business units and outlets can further improve margins and bottom line.
No Dividend: The absence of an interim dividend may disappoint some investors seeking income returns.

Disclaimer: This article is prepared for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should perform their own due diligence and consult professional advisors prior to making any investment decision.

TEXCHEM RESOURCES BERHAD CATAT PERTUMBUHAN KEUNTUNGAN KUKUH BAGI SEPARUH PERTAMA 2026: PRESTASI SEGMEN DAN INISIATIF STRATEGIK MENDORONG PENCAPAIAN

Sorotan Utama Keputusan Kewangan Suku Kedua dan Separuh Tahun 2026

Texchem Resources Berhad (“Texchem” atau “Kumpulan”) mencatatkan keputusan kewangan yang memberangsangkan bagi suku dan separuh tahun berakhir 30 Jun 2026. Kumpulan mencatatkan peningkatan ketara dari segi hasil dan keuntungan, dipacu oleh prestasi kukuh Divisyen Industri, Kejuruteraan Polimer dan Restoran. Pelabur harus memberi perhatian terhadap keputusan ini di tengah-tengah pelaksanaan inisiatif strategik dan cabaran pasaran semasa.

Pertumbuhan Hasil: Hasil sebanyak RM309.5 juta direkodkan untuk S2 2026, meningkat 8.8% berbanding suku sama tahun lalu. Untuk separuh pertama 2026, hasil ialah RM596.9 juta, naik 5.3% tahun ke tahun.
Lonjakan Keuntungan: Keuntungan sebelum cukai melonjak 126.6% tahun ke tahun kepada RM12.0 juta bagi S2 2026. Untuk H1 2026, keuntungan sebelum cukai ialah RM18.0 juta, naik 78.2%, disumbang oleh prestasi lebih kukuh dalam Divisyen Industri, Restoran dan Kejuruteraan Polimer.
Keuntungan Bersih & EPS: Keuntungan kepada pemilik Syarikat meningkat lebih 5 kali kepada RM7.96 juta bagi S2, dan sebanyak RM10.53 juta untuk H1 2026. Pendapatan sesaham asas dan dicairkan (EPS) bagi S2 2026 ialah 6.83 sen (S2 2025: 1.09 sen), dan bagi H1 2026 ialah 9.01 sen (H1 2025: 1.83 sen).
Keuntungan Operasi: Keuntungan operasi S2 2026 ialah RM16.5 juta (S2 2025: RM10.7 juta), naik 54%. Untuk H1 2026, keuntungan operasi meningkat 31.3% kepada RM27.3 juta.

Prestasi Segmen

Divisyen Industri: Hasil meningkat kepada RM149.5 juta (S2 2025: RM123.5 juta). Keuntungan sebelum cukai melonjak kepada RM4.2 juta (S2 2025: RM1.0 juta), disokong oleh pengumpulan inventori pelanggan, perniagaan baru dalam segmen perubatan dan semikonduktor, serta penambahan bahagian pasaran.
Divisyen Kejuruteraan Polimer: Hasil stabil pada RM64.6 juta, manakala keuntungan sebelum cukai meningkat kepada RM6.5 juta (S2 2025: RM6.3 juta), dipacu oleh prestasi kukuh segmen semikonduktor dan impak pertukaran asing yang menguntungkan.
Divisyen Makanan: Hasil meningkat kepada RM42.4 juta (S2 2025: RM39.7 juta). Keuntungan sebelum cukai positif pada RM1.0 juta selepas rugi RM1.6 juta tahun lalu, didorong eksport fishmeal yang lebih kuat dan harga jualan lebih tinggi serta keuntungan tukaran wang asing. Operasi Texchem Marine Labutta Limited ditamatkan sebagai langkah rasionalisasi strategik.
Divisyen Restoran: Hasil RM70.4 juta, sedikit lebih rendah, namun keuntungan sebelum cukai meningkat kepada RM1.8 juta (S2 2025: RM1.4 juta) hasil penjimatan kos daripada penutupan outlet yang rugi. Dua outlet lagi ditutup pada S2 2026.
Divisyen Perniagaan Teroka: Hasil melebihi dua kali ganda kepada RM2.5 juta, dan kerugian berkurang hasil peningkatan jualan helaian ekstrusi khas dan produk TEXa.

Kedudukan Kewangan & Modal

Ekuiti Lebih Kukuh: Ekuiti kepada pemilik meningkat kepada RM196.8 juta setakat 30 Jun 2026 (31 Dis 2025: RM188.3 juta), disokong keuntungan, tetapi diimbangi oleh kerugian terjemahan tukaran asing.
Peningkatan Pinjaman: Pinjaman meningkat kepada RM239.7 juta (31 Dis 2025: RM214.1 juta). Ini perlu dipantau kerana ia boleh menambah kos faedah dan mempengaruhi nisbah hutang masa depan.
Aliran Tunai: Aliran tunai operasi bersih turun mendadak kepada RM3.1 juta (H1 2025: RM40.1 juta) akibat keperluan modal kerja lebih tinggi. Aliran keluar pelaburan lebih rendah pada RM22.0 juta dan aliran keluar pembiayaan juga lebih rendah pada RM3.1 juta.

Tindakan Modal & Perkara Penting Pemegang Saham

Belian Semula Saham & Pengurangan Modal: Syarikat membeli semula 585,300 saham pada kos purata RM0.7639 sesaham dan membatalkan 9,664,600 saham perbendaharaan, merendahkan modal terbitan kepada 116,708,135 saham. Tindakan ini berpotensi menyokong harga saham dan EPS.
Tiada Dividen: Tiada dividen interim diumumkan bagi enam bulan berakhir 30 Jun 2026.

Tindakan Korporat, Litigasi & Komitmen

Tiada Litigasi Material atau Cadangan Korporat: Tiada tindakan undang-undang atau cadangan korporat yang material setakat 24 Julai 2026.
Komitmen Modal: RM5.4 juta untuk hartanah, loji dan peralatan yang telah dikontrak tetapi belum diperuntukkan.

Prospek

Kumpulan kekal berhati-hati dan optimis di tengah-tengah ketidaktentuan harga tenaga, inflasi dan isu rantaian bekalan. Divisyen Industri dan Kejuruteraan Polimer dijangka terus mendapat manfaat daripada pertumbuhan segmen semikonduktor dan perubatan global. Divisyen Restoran akan terus menutup outlet tidak menguntungkan untuk meningkatkan keuntungan. Divisyen Makanan pula beralih ke tapak pengeluaran yang lebih berdaya maju.
IMF menjangka pertumbuhan KDNK Malaysia pada kadar 4.7% bagi 2026, yang bakal menyokong pertumbuhan pasaran utama Texchem, namun risiko makroekonomi global masih wujud.

Pertimbangan Pemegang Saham & Potensi Isu Sensitif Harga

Pemulihan Keuntungan: Pemulihan ketara keuntungan, terutamanya dalam Divisyen Makanan dan Restoran, serta penutupan operasi yang rugi adalah positif untuk penilaian semula harga saham.
Tindakan Modal: Pembelian semula saham dan pengurangan modal boleh meningkatkan nilai pemegang saham dan persepsi pasaran.
Peningkatan Pinjaman: Peningkatan hutang perlu dipantau atas impak kos faedah dan leveraj kewangan masa depan.
Pengoptimuman Operasi: Usaha berterusan menutup unit dan outlet tidak menguntungkan akan memperbaiki margin dan keuntungan.
Tiada Dividen: Ketiadaan dividen interim mungkin mengecewakan pelabur berorientasi pendapatan.

Penafian: Artikel ini disediakan untuk tujuan maklumat sahaja dan bukan nasihat pelaburan. Pelabur harus menjalankan penilaian sendiri dan mendapatkan nasihat profesional sebelum membuat sebarang keputusan pelaburan.