KUALA LUMPUR (Aug 7): Frontken Corp Bhd's net profit more than doubled to RM12.08 million in the second quarter ended June 30, 2018 (2QFY18), from RM5.82 million a year ago, mainly due to improved performance of the group’s subsidiaries in Taiwan, Singapore, Malaysia and the Philippines.

This resulted in a higher earnings per share of 1.15 sen for 2QFY18, from 0.56 sen for 2QFY17. 

Quarterly revenue grew 16% to RM81.78 million from RM70.53 million a year ago, on higher contribution from its subsidiaries in Taiwan, Singapore, Malaysia and the Philippines, which achieved improved business performance. 

The strong quarterly performance pushed the group's net profit up 69.5% to RM18.39 million for the cumulative six months (1HFY18), from RM10.85 million a year ago, while revenue grew 11% to RM152.7 million, from RM137.59 million in 1HFY17.

On prospects, Frontken anticipates overall business conditions this year to continue being challenging, amid uncertainties such as the future trade policy of the US, as a possible trade war may impact the outlook of the global economy, as well as the future earnings of the semiconductor industry, should it intensify.

"While the group anticipates that the overall business conditions for the remaining six months of the current financial year to remain challenging, the group is cautiously optimistic that its performance for the rest of the year will be satisfactory," Frontken said in a filing with Bursa Malaysia today.

"The group will also continue to be vigilant in its cost management and continually explore ways to improve 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," the filing added.

Frontken shares closed up 4 sen or 6.67% at 64 sen today, with 160.08 million shares done, bringing a market capitalisation of RM670.7 million.