SAM Engineering slips 10.7% despite better 1QFY22 earnings

SAM Engineering slips 10.7% despite better 1QFY22 earnings
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KUALA LUMPUR (Aug 26): SAM Engineering & Equipment (M) Bhd’s share price slipped at the opening bell this morning despite announcing better net profit and revenue for the first quarter ended June 30, 2021 (1QFY22).

During the start of the trading day, SAM Engineering’s share price fell to as low as RM13.50.    

By 10.07am, SAM Engineering’s share price had recovered from the intraday low, but had shed 10.67% to RM14.40 from the previous trading day.  

Notably, the group’s share price jumped 120% from the beginning of the year until the day before its 1QFY22 results announcement — from RM7.35 on Jan 4 to RM16.24 on Aug 24, the stock's record high since its listing on Bursa Malaysia.   

Interestingly, following the announcement of the company's 1QFY22 financial performance, its share price started to fall from its peak. 

Net profit for 1QFY22 increased 66.22% to RM11.98 million from RM7.21 million for 1QFY21, while revenue gained 18.6% to RM202.78 million from RM170.98 million previously. 

In terms of prospects, the group said the global semiconductor chip shortage, which may extend until end-2023, should drive demand for semiconductor equipment. 

The group said it is investing in new machines and space to meet increasing demand for its products. It is expanding its Thai manufacturing operations, where a factory has been secured and is expected to start mass production by December. 

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Sam Engineering reports better 1Q top and bottom line growth  

Joyce Goh