Frontken Q1 earnings jumps 26% on semiconductor business growth

PETALING JAYA: Engineering services provider Frontken Corp Bhd’s net profit jumped 26% to RM6.3 million in the first quarter ended March 31, 2018, from RM5.02 million in the previous corresponding quarter mainly due to improved revenue and lower forex losses.
Revenue for the quarter rose 5.8% to RM70.9 million, compared with RM67 million in the same period last year, mainly contributed by the group’s Taiwan-based subsidiary Ares Green Technology Corp (AGTC).
It told the stock exchange that the improved business performance achieved by AGTC was largely due to the positive growth of the semiconductor business in the current quarter.
However, it said slowdown in its customers’ business in the oil and gas sector resulted in a drop in business for the group’s subsidiaries engaged in that industry in Malaysia, Singapore and the Philippines.
On its prospects, the group anticipates that the overall business conditions this year will continue to be challenging amid uncertainties such as the future trade policy of the US.
Nevertheless, the group said it is cautiously optimistic that its performance for the remaining months will be satisfactory. It said it will also continue to be vigilant in its cost management and continually explore ways to improve its efficiency.