Sam Engineering 2Q net profit falls 25% as aerospace segment drags

Sam Engineering 2Q net profit falls 25% as aerospace segment drags
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KUALA LUMPUR (Nov 18): Sam Engineering & Equipment (M) Bhd’s net profit for the second quarter ended Sept 30, 2020 (2QFY21) fell 24.67% year-on-year to RM15.48 million from RM20.55 million, despite stronger revenue, as its aerospace segment dragged with lower profit contribution amid the Covid-19 pandemic.

Revenue for 2QFY21 was up 4.96% y-o-y at RM220.9 million versus RM210.46 million previously, as its equipment segment saw stronger demand from data storage and semiconductor customers, while a favourable currency translation also boosted the topline.

Its aerospace segment, however, was affected by slower aircraft production and lower sales following the slump in air travel due to the pandemic.

For the half year ended Sept 30, 2020, the group’s net profit was down 41.46% y-o-y to RM22.69 million from RM38.76 million, while revenue slipped 3.39% to RM391.88 million from RM405.63 million.  

“Generally, the Covid-19 pandemic had beleaguered the global aerospace industry. Recent trends show that global air travel had begun recovering with increasing demand for domestic air travel. We will continue to monitor the situation and react accordingly in preserving the long-term interest of our business,” the group said on its prospects.

The group, however, also noted that the Covid-19 pandemic has triggered soaring demand for semiconductors and data storage devices used in communications and information technology infrastructures.

“The demand from our semiconductor and data storage customers echoed the positive business sentiments observed in the market. Our newly awarded projects have commenced mass production and at the same time, we continue to explore new projects with our customers,” it added.

Sam Engineering shares closed 3 sen or 0.42% higher at RM7.22 today, giving the group a market capitalisation of RM975.91 million.

Tan Choe Choe