KUALA LUMPUR (Aug 29): SKP Resources Bhd posted a 14.51% rise in its net profit for the first quarter ended June 30, 2022 (1QFY23) to RM37.17 million from RM32.46 million for the same quarter last year, on the back of an increase in its production capacity utilisation.

Earnings per share climbed to 2.38 sen from 2.08 sen, the electronics manufacturing services provider's Bursa Malaysia filing on Monday (Aug 29) showed. Revenue for the quarter rose by 7.77% to RM555.16 million from RM515.13 million.

The group noted that the increase in its production capacity utilisation came in line with an expansion in its headcount after the government lifted the freeze on hiring of foreign workers.

Looking forward, SKP Resources said the group's prospects remain positive and it expects to achieve profit growth for the financial year ending March 31, 2023 (FY23) — barring unforeseen circumstances.

It added that this is underpinned by the encouraging trend in demand for electrical & electronics products that is expected to sustain in the near future.

SKP Resources noted that its plan to increase its plant capacity is also well underway, with the factory building on its newly acquired 6.4-acre industrial land in Johor having commenced construction in January this year. As of Aug 29, it has achieved 60% completion.

"Moving forward, we anticipate higher capacity utilisation and improved production in line with the group's customer guidance as well as increased revenue contribution from costumes' orders in coming quarters.

"We will continue to expand our printed circuit board assembly, injection moulding and engineering capabilities to take advantage of a widening product assortment," it added.

Shares in SKP Resources closed one sen or 0.6% lower at RM1.67 on Monday, giving the group a market capitalisation of RM2.61 billion.