KESM 3QFY15 net profit up 27.21%, declares 3 sen dividend

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KUALA LUMPUR (June 2): KESM Industries Bhd (KESM) saw its net profit for the third financial quarter ended March 31, 2015 (3QFY15) jumped 27.21% to RM1.73 million or four sen per share as compared to RM1.36 million or 3.2 sen per share a year earlier.

KESM (fundamental: 2.5; valuation: 2) said foreign exchange gains and lower raw materials and consumables used because of reduced electronic manufacturing services sales have helped to lift its net income.

Revenue for the quarter came in at RM62.93 million from RM59.11 million previously.

The group also declared a three sen dividend for the current quarter under review.

KESM is engaged in specialised electronic manufacturing activities particularly in providing burn-in services to the semiconductor industry.

For the cumulative nine months (9MFY15), net profit has increased by 56.67% to RM6.58 million or 15.3 sen a share as compared to RM4.2 million or 9.8 sen a share previously.

Revenue for the period grew 4.56% to RM194.18 million from RM185.72 million last year.

Going forward, KESM said it will remain focus on providing testing services for microchips used in the automotive industry given the encouraging growth prospects of the global car market.

Nonetheless, the group has noted that world-wide semiconductor growth projection has been reduced to 4% from 5.4% earlier due to temporary excess inventories.

Shares in KESM closed 12 sen or 3.38% higher at RM3.67, for a market capitalisation of RM152.7 million.

(Notes: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)