KUALA LUMPUR (April 26): Frontken Corp Bhd's first quarter net profit rose 25% year-on-year to RM6.3 million from RM5.02 million, as revenue improved on growth in the group's semiconductor support services business.

In a filling with Bursa Malaysia, Frontken said revenue rose to RM70.92 million in the first quarter ended ended March 31, 2018 (1QFY18), from RM67.06 million. Frontken said it undertakes its semiconductor support services business via 88.77%-owned subsidiary Ares Green Technology Corp (AGTC).

"Against the same period last year, the profit before tax (of Frontken) increased by approximately RM1.7 million (18.3%), as a result of improved revenue and lower foreign exchange loss. The group’s revenue for the current quarter ended 31 March 2018 increased by approximately RM3.9 million (5.8%), compared with the preceding year's corresponding period, mainly contributed by AGTC. The improved business performance achieved by AGTC was largely due to the positive growth of the semiconductor business in the current quarter.

"While the group anticipates that the overall business conditions in the remaining three quarters of the current financial year to remain challenging, the group is cautiously optimistic that its performance for the remaining months will be satisfactory. The group will also continue to be vigilant in its cost management and continually explore ways to improve on its efficiency. The group’s priority will be to continue to focus its attention on the quality of its services and efficiencies so as to maintain its competitiveness," Frontken said.

According to Frontken's website, the company provides support services to the semiconductor industry, besides surface treatment and mechanical engineering solutions. Frontken said it serves a wide-range of industries, including the semiconductor, oil and gas, power generation and marine sectors.

At 2:58pm, Frontken shares were traded at 40.5 sen, for a market capitalisation of RM425.25 million. The stock saw some four million shares traded.