KUALA LUMPUR (Oct 26): Mi Technovation Bhd emerged as the top decliner in morning trades today, falling as much as 8.97% or 42 sen to RM4.26, after the group reported that third quarter net profit fell 29.24% to RM12.32 million.

At opening bell, Mi Technovation was 25 sen or 5.34% lower at RM4.43, compared to last Friday’s closing price of RM4.68. Then, it further dropped to RM4.26.

At 11am, the stock pared some of its losses and traded at RM4.31, still down by 37 sen or 7.91%, making it the top loser on Bursa Malaysia. The stock saw 5.13 million shares traded.

Nonetheless, the stock has rallied 127% from RM1.90 on Jan 2. Formerly known as Mi Equipment Bhd, it has also gained three times (204%) from its initial offering price of RM1.42. 

Last Friday, Mi Technovation said in an exchange filing that its net profit declined to RM12.32 million for the third quarter ended Sept 30, 2020 (3QFY20), from RM17.42 million a year earlier, despite a 35.88% year-on-year (y-o-y) increase in revenue to RM64.28 million from RM47.3 million.

It said the fall in net earnings was mainly due to higher fixed costs at its new Batu Kawan factory in Penang, higher commissions payable to external sales agents, as well as foreign exchange losses.

For the cumulative nine-month period (9MFY20), the group's net profit slipped 2.06% to RM40.8 million from RM41.66 million a year ago. Its revenue, however, increased by 31.33% to RM161.44 million, from RM122.92 million.

Based in Bayan Lepas, Penang, Mi Technovation, via Mi Equipment, is primarily involved in the design, development, manufacturing and sale of wafer level chip scale package and sorting machines with inspection and testing capabilities for the semiconductor industry.