KUALA LUMPUR: Flexidynamic Holdings Bhd, a solutions provider for the rubber glove manufacturing industry, posted a net profit of RM57,000 for the first quarter ended March 31 2024, down from RM733,000 a year ago.
The company recorded RM4.75 million revenue, down from RM10.80 million in the corresponding quarter of the previous year.
This was attributed to customers prioritising repair and maintenance over expansion plans amid the recent resurgence of Covid-19, which has affected market dynamics.
At pre-tax level, the profit was RM0.15 million, down from RM0.78 million in Q1 FY2023.
The was primarily due to the drop in revenue, which was offset by effective cost management strategies, Flexidynamic said in a statement today.
It said the comparison with the immediate preceding quarter (Q4 FY2023) highlighted a strategic shift.
"While revenue decreased from RM8.66 million in Q4 FY2023 to RM4.75 million in Q1 FY2024, and pre-tax profit reduced from RM1.21 million to RM0.15 million, this sequential change reflects the completion of high-margin projects in the previous quarter and positions the company for new growth opportunities," it added.
Tan Kong Leong, managing director of Flexidynamic, said despite challenging market conditions, its emphasis on cost management and operational efficiency has enabled it to maintain profitability.
"Securing the RM12.4 million contract for the water treatment plant and water intake at Loji Rawatan Air Chupak in Gua Musang, Kelantan marks a significant milestone in our strategic expansion into renewable energy and infrastructure projects.
"This contract not only paves the way for future growth but also reinforces our market position in the critical rubber glove industry, especially highlighted by the recent resurgence of Covid-19 and the increase of import tariff to 25.0 per cent on China made gloves by US has driven increased enquiries for our engineering solutions," he added.
Since its inception in 2021, Flexidynamic has established its roots in the rubber glove manufacturing industry.
The acquisition of Flexidynamic Engineering Co Ltd in Thailand in 2018 has significantly bolstered its presence in Southeast Asia, with operational offices in Malaysia and Thailand, and a manufacturing facility in Banting, Selangor.