Shah Alam, 11 February 2026 – Techbond Group Berhad achieved its highest-ever six-month net profit of RM9.5 million for the first half of its financial year ended 31 December 2025 (1HFY26), marking an 11.7% year-on-year increase despite revenue pressure caused by the strengthening Malaysian ringgit.
The adhesives and sealants manufacturer reported revenue of RM64.7 million during the period, compared with RM74.8 million in the same period last year. The decline was primarily due to foreign exchange translation effects arising from the stronger ringgit, which reduced the reported value of foreign currency-denominated sales, as well as product portfolio optimisation within its chemical segment.
Despite lower reported revenue, profitability improved significantly, driven by cost optimisation measures and higher finance income, underscoring the company’s ability to enhance operational efficiency amid currency volatility.
Profitability Strengthens on Cost Efficiencies and Financial Discipline
Techbond’s improved financial performance highlights the resilience of its business model, supported by strategic cost management and operational efficiency initiatives.
Chief Executive Officer Mr. Lee Seh Meng said the company remains focused on strengthening its core business while maintaining financial discipline in an evolving global environment.
“The Group continues to exercise vigilance in light of the evolving macroeconomic environment. Our priority remains a two-pronged approach of growing the business while optimising cost efficiency,” he said.
He added that adhesive sales have continued to grow on a constant currency basis, supported by ongoing customer acquisition across multiple industrial sectors, reflecting underlying demand strength.
The Group’s focus on operational efficiency, including in-house research and development initiatives and renewable energy adoption through rooftop solar installations, has also contributed to improved margins and cost stability.
Currency Effects Mask Underlying Business Growth
While headline revenue declined, Techbond emphasised that the top-line results do not fully reflect its underlying operational performance.
On a constant currency basis, adhesive demand remains on an upward trajectory, supported by expansion into new markets and growing industrial demand.
The strengthening ringgit reduced the reported value of overseas sales when translated into Malaysian currency, highlighting the sensitivity of export-oriented manufacturers to foreign exchange movements.
This dynamic is increasingly relevant as Malaysia’s currency strengthens amid improving economic fundamentals and rising investor confidence.
Quarterly Results Reflect Foreign Exchange Volatility
For the second quarter ended 31 December 2025 (2QFY26), Techbond recorded revenue of RM31.8 million compared with RM38.4 million a year earlier, reflecting similar currency translation impacts.
Net profit for the quarter stood at RM4.7 million, compared with RM6.4 million in the corresponding period last year.
However, the latest quarterly results included an unrealised foreign exchange loss of RM0.3 million, compared with an unrealised foreign exchange gain of RM2.5 million previously.
These unrealised foreign exchange movements are non-cash in nature and do not affect the Group’s cash flow or operational strength.
Adjusted for currency effects, underlying profitability would have been higher on a year-on-year basis.
Strong Balance Sheet Supports Future Expansion
Techbond’s financial position remains robust, supported by a healthy balance sheet and strong cash reserves.
The Group reported a net cash position, with net cash per share improving significantly to 16.2 sen as at 31 December 2025, compared with 10.0 sen a year earlier.
This strengthened financial position provides Techbond with flexibility to pursue growth opportunities, invest in research and development, and expand into new markets.
The company continues to see vast opportunities in the global adhesives market, driven by rising industrial demand, manufacturing expansion, and infrastructure development across Asia and beyond.
Adhesives Market Offers Significant Growth Potential
Techbond’s adhesives products serve a wide range of industries, including packaging, furniture, construction, automotive, and electronics.
As manufacturing activity expands globally, demand for industrial adhesives is expected to grow steadily, supported by industrial automation, packaging innovation, and infrastructure development.
The Group is actively strengthening its sales team and allocating additional resources to capture emerging opportunities in new markets.
Its upstream polymerisation segment is also gaining traction, with new customer orders gradually increasing, supporting future revenue growth.
Positive Outlook Supported by Strong Fundamentals
Looking ahead, Techbond remains confident in its growth trajectory, supported by strong margins, operational efficiency, and a resilient business model.
The company’s net cash position, growing customer base, and expanding market presence position it well to navigate global economic uncertainties.
Management expects the Group’s financial performance for the full financial year 2026 to remain satisfactory, barring unforeseen circumstances.
As Malaysia’s manufacturing sector continues to benefit from global supply chain diversification and industrial growth, Techbond is well positioned to capitalise on rising demand for industrial adhesives and specialty chemical solutions.
