KUCHING: Pansar Bhd says the implementation of the sales and service tax (SST) has squeezed its profit margins and contributed to delays in sales, noting that the impact “will take some time to mitigate.”
The company added that currency movements are offering some relief. “The ringgit continued appreciating against our major suppliers, which is positive for us,” it said.
Pansar’s core businesses span marine and industrial products, agro-engineering, electrical and air-conditioning, mechanical and electrical systems, building and construction materials, as well as heavy equipment. Its largest revenue contributor is the construction and infrastructure segment.
For the second quarter ended Sept 30, 2025 (2QFY26), Pansar posted weaker earnings despite stronger topline performance. Group net profit fell to RM5.51 million (2QFY2025: RM8.25 million) although revenue jumped to RM341.7 million (RM263.4 million). Earnings per share slipped to 1.08 sen from 1.63 sen. The company declared an interim dividend of 1.08 sen.
In the first half of FY2026, group revenue rose to RM617.8 million (6M2024: RM507.8 million) but net profit declined to RM12.5 million (RM15.14 million).
The construction and infrastructure segment remained the main driver, generating RM340.7 million in 6M2026 revenue (6M2025: RM211.4 million). The marine and industrial segment posted RM92.7 million (RM113.6 million), building and construction materials RM74.4 million (RM83.3 million), electrical and air-conditioning RM27.1 million (RM25.2 million), agro-engineering RM22.9 million (RM19.5 million), while heavy machinery was largely flat at RM15 million (RM15.1 million).
Pansar said construction and infrastructure revenue surged 84.3 per cent in 2QFY26 due to stronger execution of ongoing projects, lifting operating profit by 73.1 per cent to RM5.4 million. For 6M2026, segment revenue grew 61.2 per cent to RM340.7 million, with operating profit rising 60 per cent to RM9.3 million (RM5.8 million).
In the preceding quarter (1QFY2026), the group recorded higher pre-tax profit of RM10.8 million (2QFY2026: RM7.9 million) on a lower revenue base of RM276.1 million (RM341.7 million), as earnings were affected by doubtful debt provisions partially offset by a smaller fair value loss on quoted equity investments.
On prospects, the company said: “The Malaysian economy grew by 4.7 per cent in the first nine months of 2025, towards the upper range of initial estimates. Private and public infrastructure investments expanded, which led to growth in construction and infrastructure segments.
“However, global growth has begun to moderate while SST impacted margins which would take some time to mitigate, and led to delays in sales.”
