KUALA LUMPUR (Feb 20): Mi Technovation Bhd’s fourth quarter net profit more than doubled to RM17.51 million from RM7.16 million a year earlier as revenue jumped by a similar margin to RM68.22 million from RM31.06 million.

Earnings per share for the fourth quarter ended Dec 31, 2019 (4QFY19) jumped to 2.34 sen from 0.95 sen previously.

The group declared a dividend of three sen per share, bringing the FY19 total to four sen per share, from five sen in FY18.

In a filing today, the Penang-based semiconductor industry equipment provider attributed the better results to stronger demand from its customers in the North East Asia region in the advanced/wafer level packaging segment.

The higher sales, combined with better manufacturing efficiency, more than offset higher sales and marketing expenses as well as higher depreciation and maintenance costs of its factory in Bayan Lepas, and forex losses incurred in the quarter.

For the full-FY19, Mi Technovation’s net profit increased  33.41% to RM59.17 million or 7.9 sen per share from RM44.35 million or 6.46 sen per share.

This, it said, was thanks to higher sales, better manufacturing efficiency and lower commission to third-party agents which more than mitigated increases in general expenses.

Full-year revenue rose 19.17% to RM191.14 million from RM160.39 million on stronger demand from North East Asia, it added.

On prospects, Mi Technovation said: “We foresee 2020 to be a very busy but rewarding year for us as we carry out our strategies to expand our business.”

On the Covid-19 coronavirus outbreak to its business, the group said it has not experienced order cancellations so far.

“Even if there are some delays, activities may increase later due to the backlog created,” it said.

Operationally, the group said its technology centres in Hsinchu, Taiwan and Suwon, South Korea are already operational and it targets to have prototypes developed from the sites this year.

It added that its Batu Kawan plant will commence operations in this quarter, with its two new subsidiaries to start contributing to its topline this year.

Mi Technovation, previously known as Mi Equipment Holdings Bhd, saw its share price close 10 sen or 4.52% higher at RM2.31 today, giving the group a market capitalisation of RM1.73 billion.