Friday 29 Mar 2024
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KUALA LUMPUR (July 31): Frontken Corp Bhd's net profit for the second quarter ended June 30, 2019 rose 36.8% to RM16.52 million from RM12.08 million a year earlier, due to improved performances by the group's subsidiary in Singapore.

In a filing to Bursa Malaysia, Frontken said revenue for the quarter decreased to RM80.14 million versus RM81.78 million a year earlier, arising from lower revenue recorded by its subsidiaries in Taiwan and Malaysia.

Earnings per share rose to 1.58 sen from 1.15 sen previously.

Frontken declared an interim of 1 sen per shares in respect of the financial year ending Dec 31, 2019. It said the payment date will be announced later.

For the six months ended June 30, Frontken's net profit rose to RM31.92 million against RM18.39 million in the previous year, on the back of revenue of RM163.97 million versus RM152.7 million a year earlier.

On its prospects, Frontken said it anticipates that the overall business conditions for the remaining six-month period in 2019 will continue to be challenging amid global uncertainties where US-China trade war is chilling business investment, confidence and trade flows across the world.

"Although the general outlook for the semiconductor industry is somewhat tepid, the recent positive development following the settlement of a long outstanding dispute by major players in this sector had somewhat boosted the outlook. Therefore, moving forward, we believe it will be positive for us.

"The improved performance of our oil and gas business augurs well for the realization of our projected 2019 revenue. Having said that, enforced capital discipline, portfolio realignments and productivity efficiencies, the yet unresolved trade tensions all remain a key source of risk to the current positive outlook," it said.

At the midday break today, Frontken was flat at RM1.65 for a market capitalisation of RM1.74 billion.

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