KUALA LUMPUR (Jan 26): RGT Bhd’s net profit for the second quarter ended Dec 31, 2020 (2QFY21) swelled to RM4.09 million, from RM1.01 million posted in the same quarter last year.

Revenue surged 165% to RM45.37 million from RM17.14 million previously, underpinned by strong demand for its hygiene care products. 

In a filing with Bursa Malaysia today, executive director and chief executive officer Datuk Lim Seat Hoe said RGT was honoured to be part of the effort to help contain the Covid-19 pandemic.

“At the same time, our conviction to expand in the health, wellness and medical segment is further reinforced.

“We will focus on new customers and products for the foreseeable future,” he said.

In another filing, RGT’s 70%-owned plastic products subsidiary RGT Industries Sdn Bhd (RISB) has entered into a sale and purchase agreement with real estate company BKNT Resources Sdn Bhd to acquire property for facility expansion in Penang’s Bukit Minyak Industrial Park for RM14 million.

“RISB was set up with the objective that it would support RGT’s in-house demand for precision spray painting services under a controlled cleanroom environment for hygiene care products.

“Based on our estimated yearly quantity, the future sales volume is expected to outgrow the current capacity by June 30, 2022, hence the need for the proposed facility expansion,” it added.

RGT said the acquisition will be funded via bank borrowings and internally-generated funds and the acquisition is not expected to have any material effect on the group’s earnings and earnings per share for the financial year ending June 30, 2021.