KESM Industries Q2 net profit up 43%

PETALING JAYA: KESM Industries Bhd, the provider of burn-in solutions to semiconductor companies, saw its net profit in the second quarter ended Jan 31, 2017 (Q2FY17) surge 42.5% to RM9.97 million, from RM7 million in the previous corresponding quarter, on higher demand for burn-in and test services.
Revenue up 18.3% to RM83.1 million, compared with RM70.3 million in the same period last year.
For the six months period, its net profit grew 32.7% to RM20 million, from RM15.1 million a year ago, while revenue increased 16% to RM163.2 million, against RM140.4 million previously.
In a statement yesterday, its executive chairman and CEO Sam Lim said the increase in revenue reflected the continuing growth in the semiconductor industry with significant contributions from the automotive, industrial and storage markets.
“KESM works very closely with the top semiconductor manufacturers in these high growth market segments, with key focus on the automotive market. We are uniquely positioned to reap benefits as the global vehicle sales will reach 95 million units this year,” he added.
Moving forward, Lim said the group expects its performance to remain strong, mainly driven by the rising global automotive sales and the increased electronic chip content in making cars safer, cleaner, smarter and more comfortable.
“Today, our core competencies are in good demand spurring further value-add services to our customers. KESM is fully committed to developing long-term strategic initiatives in our core business.”