ATA IMS’s 3Q profit surges 165% on strong order flows

ATA IMS’s 3Q profit surges 165% on strong order flows
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KUALA LUMPUR (Feb 23): ATA IMS Bhd’s net profit surged 165.2% to RM53.31 million for the third quarter ended Dec 31, 2020 from RM20.1 million a year earlier, on strong order flows coupled with improved productivity and operational efficiency.

In a bourse filing, the electronics manufacturing services provider said earnings per share rose to 4.43 sen from 1.67 sen.

Quarterly revenue rose 35.5% to RM1.17 billion from  RM865.08 million in the year-ago third quarter.

For the nine months ended Dec 31, 2020, ATA IMS’ net profit grew 62.9% to RM123.36 million from RM75.72 million in the previous corresponding period.

Nine-month revenue increased 24% to RM3.25 billion from RM2.63 billion a year earlier.

In a separate statement, ATA IMS executive chairman Datuk Seri James Foo said the strong quarterly results despite Covid-19 is a reflection of its operational excellence and resilience.

He said, operations at the group’s factories have returned to normal since a one-week voluntary shutdown in early January, adding that ATA IMS is also in the midst of expanding its facilities in Pasir Gudang with another 378,000 sq ft of space.

“We are still looking for more factory space to increase our production capacity,” said Foo.

On its outlook, the group remains optimistic based on its main customer’s strong order forecast.

“In addition, the company foresees production of new customer projects to ramp up and contribute more significantly in the coming months,” added Foo.

ATA IMS shares closed 11 sen or 3.73% lower at RM2.84, for a market value of RM3.42 billion. The counter saw some 5.54 million shares traded.

S Kanagaraju