KUALA LUMPUR: Integrated engineering supporting services provider Coraza Integrated Technology Bhd is set to ride on the semiconductor boom as there are no signs of a slowdown in spending or expansion by its customers, despite the uncertainties brought about by the Covid-19 pandemic.
Its managing director, Lim Teik Hoe, believes that Covid-19 will have a positive impact on the semiconductor industry in the long run, with the push towards digitalisation and the adoption of new technologies.
“As the backbone of all electronic products, semiconductors will be one of the most important sectors, in which technology is expected to play a much greater role than before. Right now, the industry is experiencing an unprecedented boom.
“Coraza provides integrated engineering support to its customers, many of whom are large multi-national corporations who are market leaders in their respective fields and from high-growth industries such as semiconductor, instrumentation, life science and medical devices, telecommunications, aerospace, and electrical and electronics.
“Over the last two years, the company has seen increasing enquiries and orders from its existing and potential customers across all market sectors, especially the semiconductor sector, both locally and from their global headquarters,” he said in a statement yesterday.
Coraza is principally involved in the fabrication of sheet metal and precision-machined components, as well as the provision of related services such as design and development and value-added sub-module assembly services.
On the company’s prospects, Lim said Coraza plans to double its manufacturing floor space to meet the growing demand for its services. It will first extend its existing factory to house new machines. The extension is expected to be completed by this month.
Apart from the extension, Coraza intends to build a factory adjacent to its existing factory in Nibong Tebal, Penang, to expand its production capability and capabilities, and enable the company to provide new services (provision of finishing services) to customers in the future.
Construction of the factory will be done in three phases for completion by December 2023.
In its latest quarterly announcement, Coraza reported a net profit of RM3.5 million for its third quarter ended Sept 30, 2021 (Q3’21) on RM28.1 million in revenue. Its earnings per share (EPS) for the quarter was 1.13 sen.
For the cumulative nine months ended Sept 30, 2021 (9M’21), the company achieved a net profit of RM8.9 million on revenue of RM71.3 million. EPS stood at 2.88 sen.
According to the company’s prospectus, Coraza recorded a net profit of RM8 million and revenue of RM83.7 million in FY2020.
The company’s revenues for Q3’21 and 9M’21 came mainly from its sheet metal fabrication segment, which accounted for RM24.2 million and RM61.3 million or 86% of both its quarterly and cumulative revenues, respectively.
For the current quarter and financial year-to-date, Coraza’s revenue was contributed by customers from the semiconductor industry (about 58%) followed by instrumentation and medical and life sciences industry (about 36%).
In the listing exercise, Coraza raised RM33 million from its public issue of 117.8 million new shares at an issue price of 28 sen per share. The initial public offering (IPO) included an offer for sale of 21.4 million existing shares to selected investors by way of private placement.
The stock more than doubled its IPO price to 70 sen in its trading debut. It closed at 64.5 sen on volume of 193.78 million shares.
