Frontken 1Q net profit more than doubles on improved revenue, forex gain

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KUALA LUMPUR (April 23): Frontken Corp Bhd's net profit more than doubled to RM15.4 million in its first quarter ended March 31, 2019 (1QFY19) from RM6.3 million a year ago, on the back of improved revenue and foreign exchange gain.

Earnings per share grew to 1.47 sen from 0.6 sen in the previous year's corresponding quarter.

Revenue for the quarter rose 18.2% to RM83.83 million from RM70.92 million a year ago, according to the group's stock exchange filing today.

This was supported by higher contributions from its subsidiaries in Malaysia, Singapore, Taiwan and Philippines, particularly in its semiconductor as well and oil and gas businesses, Frontken said.

Going forward, the group said its overall business conditions for the year will continue to be challenging amidst global uncertainties.

However, the recent settlement of a long outstanding dispute by major players in the semiconductor sector has somewhat boosted its outlook, Frontken said.

"As for the oil and gas industry, we noticed that the number of enquiries picked up and we hope to transfer the same into orders," the group added.

At 3.06pm, shares in Frontken were up 5 sen or 3.9% to RM1.33, giving the group a market capitalisation of RM1.4 billion. A total of 10.63 million shares had been traded.