Tex Cycle Technology (M) Berhad (“Tex Cycle” or the “Group”), an established waste management and recycling solutions provider, announced its financial results for the first quarter ended 31 March 2025 (“Q1 FY2025”), with the Group recording revenue of RM8.9 million and a Profit Before Tax (“PBT”) of RM2.6 million.
While revenue increased by 11.2% from RM8.0 million in the corresponding quarter last year (“Q1 FY2024”), PBT declined by 65.6% from RM7.4 million.
However, it is important to note that the previous year’s performance was lifted by one-off gains from the disposal of investment property.
Excluding this non-recurring item, the Q1 FY2025 performance reflects a stable operating result underpinned by steady contributions from the renewable energy segment and gradual recovery from the core recycling and recovery division.
On a quarter-on-quarter basis, revenue declined slightly by 4.5% from RM9.3 million in Q4 FY2024, mainly due to softer demand in the recovery and recycling business. PBT correspondingly decreased by 43.1% from RM4.5 million to RM2.6 million, due to lower fair value gains on quoted securities during the quarter.
At the same time, the Company held its 21st Annual General Meeting (“AGM”) and an Extraordinary General Meeting (“EGM”) earlier today.
All resolutions, including the re-election of directors, appointment of auditors, renewal of share issuance authority, and share buy-back mandate, were approved by shareholders with full support, where the shareholders also received the annual report for financial year ended 31 December 2024.
Notably, shareholders also unanimously approved the acquisition of Meridian World Sdn. Bhd. (“Meridian World”) for RM55.0 million during the EGM.
This strategic acquisition will further strengthen Tex Cycle’s ESG-oriented portfolio by expanding its service offerings to include wastewater treatment, chemical processing, and environmental consultancy, significantly increasing its market presence and capabilities.
To recap, Meridian World is an established player in the scheduled waste management industry, offering comprehensive solutions ranging from waste collection, transportation, recovery, and treatment to wastewater management.
It is licensed by the Department of Environment to treat 22 codes of scheduled wastes, electronic waste, chemicals, acids and alkaline, waste catalyst, hydraulic and lubricating oil, contaminated rags and containers, rubber and latex, ink and sludge.
Operating from its fully licensed scheduled waste recovery facilities in Kedah, Meridian World serves a wide spectrum of industries, including semiconductor, chemical, and manufacturing sectors.
Mr. Gary Dass A/L Anthony Francis, Group Chief Executive Officer of Tex Cycle expressed appreciation for the unwavering support from shareholders, stating,
“We are grateful to our shareholders for their continued trust and approval of key resolutions that will shape Tex Cycle’s next phase of growth. The Q1 results reflect our core strength and operational discipline in navigating market conditions.
With the green light for the Meridian acquisition, we are better equipped to accelerate our ESG roadmap and broaden our service base across Malaysia.”
As Tex Cycle progresses into the remainder of FY2025, the Group remains optimistic about its strategic direction, particularly with the Government’s heightened enforcement on scheduled waste compliance and the push for renewable energy adoption.
With the successful conclusion of the AGM and EGM, and continuous improvement initiatives, Tex Cycle is well-positioned to build on its momentum and drive further long-term value creation.
As at 5:00 P.M., 14 May 2025, the share price of Tex Cycle closed at RM1.04, representing a market capitalisation of RM292.4 million.
For more information, visit https://www.texcycle.com.my/
