Sam Engineering 1Q net profit almost doubles to RM24m from higher sales

Sam Engineering 1Q net profit almost doubles to RM24m from higher sales
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KUALA LUMPUR (Aug 24): SAM Engineering & Equipment (M) Bhd’s net profit rose by 96.43% to RM23.53 million for its first quarter ended June 30, 2022 (1QFY22) from RM11.98 million a year ago, thanks to higher contribution from its aerospace and equipment divisions.

In a bourse filing on Wednesday, the company’s revenue leapt 74.56% to RM353.97 million in 1QFY22 from RM202.78 million. Earnings per share rose to 4.35 sen from 2.21 sen.

“The increase in group profit before tax of RM13.8 million was attributable to the higher profit contribution from the aerospace and equipment segments of RM4.2 million and RM9.6 million respectively, as a result of higher sales and favourable foreign exchange translation,” it said.

SAM Engineering added that the higher revenue from the aerospace segment was mainly due to increase in sales of casing and aerostructures products.

Meanwhile, the improved topline of its equipment segment was attributed to better demand from its semiconductor and data storage customers and favourable foreign exchange.

The company said it continues to see increasing demand for its A320neo, B737Max and A220 aircraft products, supported by the recovery of global air travel.

It added that it is investing in production capacities in Malaysia and Thailand to meet the increasing needs of its customers in the semiconductor industry.

SAM Engineering’s share price closed down 10 sen or 2.31% at RM4.23 on Wednesday for a market capitalisation of RM2.29 billion.

Lam Jian Wyn