Friday 29 Mar 2024
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KUALA LUMPUR (Feb 12): Frontken Corporation Bhd net profit for the fourth quarter ended Dec 31, 2018 (4QFY18) jumped 90% year-on-year to RM18.7 million, from RM9.8 million previously.
 
In a filing to bourse exchange, the group said its profit before tax (PBT) rose 79.1% to RM24.4 million, from RM13.6 million a year ago (4QFY17), due to lower foreign exchange loss and improved performances by its subsidiaries in Malaysia, Singapore and Taiwan. 

Revenue for the current quarter stood at RM88.7 million, a 10.3% increase from RM80.4 million in the previous year. This also translates to basic earnings per share at 1.78 sen versus 0.94 sen a year ago. 

The group declared a second interim single tier dividend of 0.8 sen per ordinary share. The entitlement and payment dates will be announced at a later date. 

For its cumulative 12 months ended Dec 31, 2018 (12MFY18), revenue rose 10.3% to RM327.2 million, from RM296.6 million in the preceding year corresponding period. 

“Year-to-date revenue from our subsidiaries in Singapore, Malaysia and Taiwan rose 17.1%, 14.9% and 8.6% respectively, compared to the preceding year corresponding period. 

“This was consistent with the report issued by Semiconductor Industry Association (SIA) on the overall growth in the semiconductor industry, which had directly benefitted the group’s performance,” it said.
 
Against the same period last year, its PBT increased by 63.9% to RM75.6 million from RM46.1 million a year ago as a result of improved revenue, vigilance in cost management and a small gain on disposal of an associate. 

Its profit after tax for 12MFY18 was reported at RM57 million, a 56.6% increase compared to RM36.41 million during the preceding year's corresponding period.

Looking forward, Frontken Corporation said the unresolved US-China trade tensions remains a key source of risk to the current outlook. 

“Amid the uncertainties in future trade policy of the United States, as well as the economic performance of Europe and China, the group anticipates that the overall business conditions in 2019 will continue to be challenging.

“To that end, we will continue to focus our attention on the quality of our services and cost management, so as to maintain our competitiveness.

“We believe that our subsidiaries in Taiwan, Singapore, Malaysia and the Philippines will be able to continue with its momentum during the year and therefore, we are cautiously optimistic that they will contribute positively to the group’s earnings in 2019,” it added. 

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