KUALA LUMPUR (July 11): KESM Industries Bhd has declared a special interim dividend of 4.5 sen a share to be paid on Aug 18.

In a filing with Bursa Malaysia today, the company said it will be dishing out a total of RM1.9 million to pay shareholders the special dividend.

KESM executive chairman and chief executive officer Sam Lim said the company has performed "exceedingly well" in the first nine months of this financial year, posting a profit after tax of RM22.6 million, which surpasses the last financial year's 12-month results of RM17 million.

"The outcome of our investment in test services has achieved a competitive advantage to produce these satisfying results," he said in a press release.

"Today's declaration of a special dividend is a reward to our long standing shareholders, who also enjoyed a good growth in the share value of their holdings," he added.

KESM specialises in the testing of integrated circuits, and is a service provider to the electronics and semiconductor industries.

However, Lim warned that the semiconductor industry will remain volatile.

According to a leading market indicator, the semiconductor industry revenue is forecasted at US$333 billion (about RM1.3 trillion) in 2016, representing a decrease of 0.6% from 2015, and two consecutive years of revenue decline, he said.

"Nonetheless, our focus in the automotive market segment will offer the most promising opportunities for growth," he said.

"This strategy has served us well and we are confident that our investments have created a strong foundation for our future," he added.

KESM shares closed 3 sen or 0.52% lower at RM5.69 today, giving the company a market capitalisation of RM239.59 million.