Friday 29 Mar 2024
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KUALA LUMPUR (Nov 1): Frontken Corp Bhd's net profit for the third quarter ended Sept 30, 2022 (3QFY2022) rose 27% year-on-year to RM34.73 million from RM27.30 million, as a result of improved revenue and better profit margins.

In a bourse filing on Tuesday (Nov 1), the company said revenue for the quarter jumped to RM134.57 million, from RM116.59 million previously, mainly due to better contributions from nearly all its subsidiaries.

Earnings per share stood at 2.21 sen, versus 1.74 sen previously.

The company did not declare any dividend.

For the cumulative nine months ended Sept 30, 2022, Frontken said its net profit climbed to RM93.45 million from RM74.96 million previously, on the back of a revenue of RM381.91 million versus RM328.74 million.

On its prospects, Frontken said while the semiconductor industry is seeing demand cringes as inventory adjustments continue in the customer electronics sector and macroeconomic growth slows, one of its major customers in Taiwan expects end-market demand weakening and customers’ ongoing inventory adjustment to be balanced by continued ramp-up in their industry-leading advance technologies.

“We believe the persistent demand for 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 strong in the remaining months in 2022 due to increased orders under various contracts.

“Amid the promising business developments, we are cautiously optimistic about our performance in 2022,” the company said.

At the midday break on Tuesday, Frontken had dipped 0.82% or two sen to RM2.43, with 229,900 shares traded.

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