Natural block rubber processor Seng Fong Holdings Bhd saw its profit after tax (PAT) plunge 77.1% to RM8.06 million for the financial year ended June 30, 2026 (FY26), from RM35.15 million a year earlier, as weaker production and lower selling prices dragged revenue down sharply.
Full-year revenue fell 29.5% to nearly RM1.05 billion from RM1.49 billion in FY25, with the group attributing the decline largely to reduced production output amid supply-chain disruptions linked to geopolitical tensions affecting shipping routes through the Strait of Hormuz.
Despite the weaker full-year performance, Seng Fong ended FY26 on a stronger note as its quarterly PAT surged to RM12.45 million from RM3.46 million in 4Q25, even as the 4Q26 revenue declined 37.7% to RM228.84 million from RM367.56 million.
The fourth-quarter earnings improvement was driven by higher production efficiency following automation initiatives, cost savings from in-house logistics operations and a more favourable sales mix comprising higher-margin premium-grade products.
Executive Director Jimmy Er Tzer Nam said the stronger quarter demonstrated that the group’s operational efficiency initiatives were beginning to deliver results, supporting its longer-term margin outlook.
He shared that Seng Fong is continuing to invest in smart rubber manufacturing equipment and strengthen its in-house transportation and logistics capabilities. The group has also acquired a 51% equity interest in Rainbow Rubber Buying Center Ltd in Ghana, providing direct access to an additional source of raw materials and supporting higher production output.
“The expanded sourcing base in Ghana could also help mitigate tightening natural rubber supply risks as more Indonesian smallholders switch from rubber plantations to oil palm,” he said.
Barring unforeseen circumstances, Er said the group remains cautiously optimistic about its prospects and is confident of declaring a dividend for FY27.
