Pan Merchant Bhd slipped into the red in the first half of 2026 (1H26), posting a loss after tax of RM4.91 million compared to a profit after tax (PAT) of RM1.23 million a year earlier, as weaker hermetic filter sales in the Americas and Europe weighed on earnings.
Revenue for the six-month period fell 28% to RM40.77 million from RM56.62 million, reflecting cautious customer capital expenditure amid geopolitical uncertainty, slower sales activity and weaker US dollar and euro exchange rates against the group’s reporting currency.
For the second quarter, revenue declined 15.4% to RM24.78 million from RM29.28 million, mainly due to lower hermetic filter and steelworks sales, although technical support services recorded stronger contributions.
Managing Director Wong Voon Ten said parts of the business remained resilient, with filter press sales rising to RM6.36 million from RM4.78 million, while technical support revenue increased to RM8.84 million from RM5.06 million.
The group is also diversifying beyond the edible oil sector, having secured a RM26 million project for the Sungai Rasau water supply scheme and a RM17 million contract to supply membrane filtration solutions to the food processing industry.
As at Aug 17, Pan Merchant’s order book stood at RM78.43 million, comprising filtration equipment, replacement parts and steel works to be recognised over the next 12 months.
The group remains cautiously optimistic, supported by its order book and expansion into water and wastewater treatment, food processing, renewable energy and mining.
