KUALA LUMPUR: Electronics manufacturing services (EMS) provider NationGate Holdings Bhd is set to ride on the networking, telecommunications and automotive sectors boom given the widespread deployment of 5G networks and high demand for electric vehicle (EV).
NationGate managing director Ooi Eng Leong believes that the accelerated 5G adoption and the move towards EV is going to have a positive impact on the networking, telecommunications and automotive sectors in the long run.
“NationGate provides EMS and technical support to its customers, many of whom are multinational companies from high growth industries such as networking and telecommunications, industrial instruments, data computing, consumer electronics, automotive and semiconductor,“ he said.
“Over the last three years, the group has seen increasing orders from its customers from networking and telecommunications, data computing, automotive and semiconductor segments.
“The widespread deployment of 5G networks and high demand for EV should continue to benefit the networking, telecommunications and automotive sectors in terms of order visibility and lengthened the sectors’ upcycle,” he added.
As at Nov 14, NationGate has unbilled purchase orders of RM369.5 million which are to be billed upon delivery progressively over the next 12 months.
In the group’s latest quarterly announcement, NationGate posted a net profit of RM30.1 million for the third quarter ended Sept 30, 2022 (Q3FY22), on revenue of RM305.2 million.
For the cumulative nine months ended Sept 30, (9MFY22), the group posted a net profit of RM63.4 million on revenue of RM731.2 million. The 9MFY22 profit has surpassed its previous record high net profit achieved in FY21 of RM59.5 million.
The group’s revenues for Q3FY22 and 9MFY22 came mainly from its networking and telecommunications customer segments, which accounted for RM228 million and RM511.5 million, representing 74.7% and 70.0% of both its quarterly and cumulative revenues, respectively.
NationGate made a strong debut on the ACE Market of Bursa Malaysia on Jan 12 with an opening price of 81 sen, a 113.2% premium to its initial public offering (IPO) price of 38 sen, with 65.8 million shares traded at the opening bell.
Under the listing exercise, NationGate has raised RM165.5 million from the IPO via
the issuance of 435.5 million new shares.
Based on the enlarged share capital of 2.1 billion shares, the total market apitalisation
of NationGate would be RM788.1 million upon listing, making it the largest listing on the ACE Market of Bursa Securities.
