Friday 29 Mar 2024
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KUALA LUMPUR (Sept 21): KESM Industries Bhd posted its third consecutive quarter of net loss for the fourth quarter ended July 31, 2022 (4QFY22) on lower revenue as the group scales down its electronic manufacturing services (EMS) business, coupled with higher expenses for repairs, maintenance and utility.

The group reported a net loss of RM2.5 million or 5.82 sen per share, more than three times its net loss of RM654,000 or 1.52 sen per share a year ago.

KESM proposed a final dividend of six sen per share, to be approved at its annual general meeting. This is in addition to the group’s interim dividend of 1.5 sen per share paid on Aug 23.

Revenue for 4QFY22 fell by 4.1% to RM55.66 million, from RM58.05 million a year ago.

For the full year, net profit fell by 77% to RM1.67 million, from RM7.34 million in FY21, while revenue dipped 0.6% to RM246.74 million, from RM248.26 million.

KESM’s executive chairman Sam Lim said although the group’s production volumes for test and burn-in of semiconductor devices have increased, the scaling down of EMS activities significantly weighed on overall performance.

“We enter the new financial year with cautious optimism as the worldwide semiconductor chip shortages as well as component shortages have not eased.

“While the consumer sector may slow down, the automotive segment will continue to record growth as semiconductor content per vehicle will increase due to the transition to electric and autonomous vehicles,” he said.

Shares of KESM, which fell 42% year-to-date, closed unchanged at RM7 per share, giving it a market capitalisation of RM301.1 million.

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