KUALA LUMPUR (July 28): Frontken Corporation Bhd’s net profit for the second quarter ended June 30, 2022 (2QFY22) rose by 30.17% to RM32.2 million, compared with RM24.74 million a year earlier, on the back of improved revenue and better profit margins.
Consequently, earnings per share increased to 2.05 sen from 1.57 sen.
In a Bursa Malaysia filing on Thursday (July 28), the group said its quarterly revenue rose by 18.02% to RM128.2 million from RM108.63 million, underpinned by higher contributions from its subsidiaries in Taiwan, Singapore and Malaysia.
Meanwhile, the surface engineering service provider also declared its first single tier interim dividend of 1.60 sen per share for the financial year, to be paid on Sept 20.
For the first-half period, the group’s net profit increased by 23.22% to RM58.72 million, from RM47.65 million, as a result of strict cost management and higher revenue.
Revenue, on the other hand, was up by 16.59% to RM247.34 million from RM212.14 million.
On a quarterly basis, net profit edged higher by 21.44% from RM26.52 million reported for 1QFY22, while revenue came in higher by 7.6% from RM119.15 million for 1QFY22.
Moving forward, the group said the global semiconductor industry is expected to grow further in 2023.
“We believe the persistent high demand of chips will be positive for our semiconductor business in years to come, where continuing high demand for the same will necessitate more chip research, design and manufacturing in the years ahead.
“As for the oil and gas industry, we are cautiously optimistic that our business will be stronger, compared to last year, due to increased orders from various contracts for provision of manpower supply, and also mechanical rotating equipment services and parts that we have with the Petronas group of companies.
“We hope this momentum will continue for the rest of this year,” the group said.
At Thursday's noon break, shares in Frontken finished three sen or 1.12% higher at RM2.70, giving it a market capitalisation of RM4.27 billion.