Ge-Shen Q2 Net Profit Drops 10% After Prior Year One-Off Gain

Ge-Shen Corporation announced its financial results for the second quarter ended 30 June 2026 (“Q2FY2026”), recording a revenue increase of 19.2% quarter-on-quarter to RM107.41 million, while profit before tax and profit after tax rose 53.0% and 54.3% QoQ to RM10.72 million and RM8.22 million, respectively. The performance reflects improved operational efficiency, tighter cost management and the Group’s continued transition towards higher-value EMS and advanced manufacturing activities.

The Group’s Q2FY2026 performance was also supported by its growing involvement in higher-value product segments, particularly AI-related products, optical products and industrial applications. These areas form an increasingly important part of Ge-Shen’s manufacturing portfolio and are aligned with the Group’s strategy to move further up the value chain by undertaking more complex, high-quality and higher-value projects. The Group will continue to strengthen its capabilities in these focused product areas as it expands its participation in advanced manufacturing and captures new growth opportunities.

On a year-on-year basis, Q2FY2026 revenue increased 12.1% to RM107.41 million from RM95.80 million in Q2FY2025, mainly driven by the inclusion of the EMS segment, together with higher revenue contributions from the electronic, electrical and home lifestyle segments. Q2FY2026 PAT stood at RM8.22 million, compared with RM9.28 million in the corresponding quarter last year. However, the previous corresponding period benefited from one-off gains arising from the disposal of non-core property, plant and equipment, while the current quarter’s performance was supported by stronger underlying contributions from the Group’s core operations as Ge-Shen continued to advance its transformation strategy.

For the six-month period ended 30 June 2026, Ge-Shen recorded revenue of RM197.56 million, representing a 31.5% YoY increase from RM150.29 million. PBT increased to RM17.73 million from RM17.35 million, while PAT stood at RM13.55 million compared with RM14.56 million previously. Notably, the corresponding period in 2025 included a RM4.90 million gain on disposal of property, plant and equipment, compared with RM0.07 million in 1HFY2026, highlighting the improvement in the Group’s underlying operating performance.

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