Infinity Logistics posts 71.4% jump in interim net profit despite margin pressure

Bulletin Express09-18

Infinity Logistics and Transport Ventures Limited (“Infinity Logistics”, stock name: INFINITY L&T) reported a 71.4% year-on-year surge in net profit to RM27.89 million for the six months ended 30 June 2026, driven primarily by a RM15.18 million reversal of impairment on receivables that lifted other income by more than tenfold.

Revenue increased 4.3% to RM223.84 million, but gross profit fell 13.9% to RM38.67 million as cost of services and goods sold rose 9.1% to RM185.17 million. Consequently, gross margin narrowed to 17.3% from 20.9% a year earlier. Profit before tax expanded 53.9% to RM29.99 million, and basic earnings per share advanced to RM1.35 sen from RM0.79 sen.

Segment trends were mixed. • Logistics centre and related services revenue climbed 18.4% to RM65.92 million, yet segment gross profit halved to RM4.13 million due to higher staff and depreciation costs. • Land transportation was the standout performer: revenue jumped 53.8% to RM48.12 million and segment gross profit soared 311.4% to RM6.74 million on stronger volumes and margin optimisation. • Integrated freight forwarding revenue declined 12.3% to RM39.34 million, with gross profit down 11.1% to RM8.05 million amid softer sea-freight volumes. • Flexitank solution and related services posted a 12.5% revenue drop to RM66.99 million and a 22.4% fall in gross profit to RM17.64 million on price competition and forex effects. • 4PL services revenue contracted 45.2% to RM3.45 million, with gross profit down 33.9% to RM2.10 million.

Total assets stood at RM682.66 million at end-June, little changed from a year earlier. Net assets rose 8.4% to RM359.79 million, supported by a 11.9% increase in current assets and a 6.3% reduction in current liabilities. Net current assets improved 43.6% to RM97.04 million. The gearing ratio eased to 0.63 from 0.69 as interest-bearing borrowings fell to RM89.06 million, while cash and bank balances were RM25.99 million.

Management highlighted ongoing geopolitical risks and elevated energy costs but reiterated confidence in long-term growth, underpinned by investments in electric material-handling equipment and expansion of rail-linked multimodal facilities such as the Infinity Multimodal Terminal 8 and Segamat Inland Port. No interim dividend was declared.

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