PETALING JAYA: Semiconductor firm Frontken Corp Bhd’s net profit for the third quarter ended Sept 30, 2019 jumped 25.4% to RM19.05 million from RM15.19 million a year ago, mainly due to improved performance by its subsidiary in Singapore and better profit margin resulting from the continual efforts to improve efficiency across the group.
Its revenue increased 1.4% to RM87.05 million from RM85.86 million.
For the nine-month period, Frontken’s net profit surged 51.8% to RM50.97 million from RM33.57 million a year ago, with revenue rising 5.2% to RM251.02 million from RM238.55 million.
The group anticipates that the overall business conditions for the remaining three months in 2019 will continue to be challenging amidst global uncertainties where US-China trade war is chilling business investment, confidence and trade flows across the world.
However, it believes global demand for semiconductors will continue to grow.
“The group is seeing rapid advancement and deployment of new innovative technologies and believes that this will continue to boost the demand for the products produced by its semiconductor customers. This demand will accelerate further once 5G is rolled out globally. Therefore, moving forward, we believe that all these developments in the electronic and technology space will be positive for our business,“ Frontken said.
In the oil and gas industry, it noticed that the number of enquiries had picked up and have translated into orders since the second half of the year.
“In addition, being appointed as one of the panel contractors for the provision of manpower supply and also mechanical rotating equipment services and parts for Petronas Group will hopefully provide this division with additional works in years to come.”
Frontken is cautiously optimistic that its performance for the remaining months will be satisfactory.
At the midday break, its share price was unchanged at RM1.95 with 798,000 shares changing hands.
