KUALA LUMPUR (Nov 7): Frontken Corporation Bhd’s net profit jumped 65% to RM15.19 million in the third financial quarter ended Sept 30, 2018 (3QFY18) from RM9.19 million in the previous year, thanks to better performance across its regional subsidiaries which benefited from growth in the semiconductor business.

Revenue rose 9.2% to RM85.86 million versus RM78.62 million a year ago; earnings per share grew to 1.45 sen from 0.88 sen in 3QFY17, its quarterly results filing today showed.

The group declared an interim dividend of 0.7 sen per share for FY18, with the entitlement and payment dates to be announced later.

Frontken said due to the growth of the semiconductor industry globally, the group’s subsidiaries in Taiwan and Singapore achieved an improved business performance of 3.8% and 10.7% year-on-year, respectively.

Its subsidiaries in Malaysia and the Philippines also recorded better performance due to new works secured in light of recovery in the oil and gas industry, it added.

In addition, it said Frontken (Singapore) Pte Ltd, a wholly-owned subsidiary of the company, has disposed of its entire 49% equity interest in an associate, Frontken (Thailand) Co Ltd, which resulted in a gain on disposal of RM650,000.

For the cumulative nine months, Frontken's net profit surged 68% to RM33.57 million from RM20.03 million the previous year, again due largely to its regional businesses' improvements, while revenue rose 10% to RM238.55 million from RM216.2 million.

Moving forward, the group remains positive on the overall business condition for the remaining three months of FY18 as the World Semiconductor Trade Statistics has forecast that the industry will record an annual global market growth of 12.4% in 2018.

Frontken’s shares closed down 1.5 sen or 1.77% to 83 sen, with 17.62 million shares done for a market value of RM869.81 million. In the past 12 months, the stock has jumped over 102%.