Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on November 6, 2019

KUALA LUMPUR: Frontken Corp Bhd’s third-quarter (3Q) net profit grew 25.43% to RM19.05 million, from RM15.19 million a year earlier, mainly due to improved profit margins.

Earnings per share for the quarter ended Sept 30, 2019 rose to 1.82 sen from 1.45 sen previously, the group said in a stock exchange filing yesterday.

Quarterly revenue edged up 1.39% to RM87.05 million from RM85.86 million, mainly attributable to a better business performance by Frontken’s Singapore subsidiary.

For the cumulative nine months ended Sept 30, 2019, net profit increased 51.82% to RM50.97 million or 4.86 sen per share, from RM33.57 million or 3.2 sen per share last year. Revenue rose 5.23% to RM251.02 million from RM238.55 million.

Frontken said its earnings improved due to a better product mix and vigilance in cost management.

The group expects the overall business condition in 4Q to be challenging amid global uncertainties with the US-China trade war chilling business investment, confidence and trade flows across the world.

“As for the oil and gas industry, we noticed that the number of enquiries had picked up and translated into orders since the second half of the year,” the group said.

Frontken added that demand for products produced by its semiconductor customers would continue to be supported by rapid advancement and deployment of new innovative technologies.

Hence, the group believes, developments in the electronic and technology space will be positive for its business.

“To that end, we are cautiously optimistic that our performance in the remaining months [of the financial year] will be satisfactory,” it said.

Shares in Frontken rose three sen or 1.54% to close at an all-time high of RM1.98 yesterday, valuing the group at RM2.08 billion. Some 5.51 million shares were traded.

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