KESM posts RM3.3m net loss in 4Q on lower revenue

KESM posts RM3.3m net loss in 4Q on lower revenue
-A +A

KUALA LUMPUR (Sept 22): KESM Industries Bhd’s net loss widened to RM3.28 million in the fourth quarter ended July 31, 2020 (4QFY20), from RM3.02 million in the previous quarter.

Consequently, loss per share widened to 7.63 sen from 7.02 sen, according to a stock exchange filing.

Meanwhile, revenue fell 14.71% to RM46.26 million from RM54.24 million.

On a yearly basis, KESM fell into the red, from posting a net profit of RM2.29 million in 4QFY19.

Revenue dropped 34.76% to RM46.26 million from RM70.91 million a year ago, due to lower volume burn-in, testing and electronic manufacturing services.

For the entire FY20, its net profit slumped 98.47% to RM96,000 from RM6.28 million, while revenue fell 21.6% to RM240.98 million versus RM307.37 million.

In a separate statement, KESM executive chairman and chief executive officer Sam Lim said the group remained a financially strong company despite an unfavourable macroeconomic environment, adding that the group’s balance sheet remained healthy and its cash balance grew by 15% to RM230 million.

“We serve a diversified customer base. The ability to maintain five of the top 10 largest automotive semiconductor manufacturers in the world with consistent high quality and meeting their values, will continue to ensure our success.

“We will prudently invest in advanced equipment to build world-class capabilities serving the world’s premier semiconductor manufacturers in Malaysia,” said Lim.

Additionally, the board is proposing a final tax exempt dividend of 6 sen to be approved at the annual general meeting on Jan 7, 2021.

At market close, shares in KESM were nine sen or 1.06% lower at RM8.41, bringing its market capitalisation to RM361.75 million. It saw some 5,800 shares traded. 

Lam Jian Wyn