KUALA LUMPUR (Nov 26): SKP Resources Bhd's net profit fell 9% to RM40.12 million for its second quarter ended Sept 30, 2021, from RM44.07 million a year earlier, as its operational capacity was affected by lockdown restrictions.

Earnings per share declined to 2.57 sen from 2.82 sen last year, the electronics manufacturing services (EMS) provider's bourse  filing showed.

Quarterly revenue dropped 23.8% to RM553.74 million, from RM726.31 million in the same quarter last year.

SKP said its financial performance was hit by the restriction of 60% headcount capacity throughout the implementation of the Full Movement Control Order (FMCO) from June 1 to Aug 31 this year. Last year, the group faced mandatory closure of business operations during the first MCO between March 18 and end-April.

For the six months ended Sept 30, 2021, the group saw a 34.1% increase in net profit to RM72.58 million, from RM54.1 million a year earlier, despite revenue falling 5% to RM1.07 billion from RM1.12 billion. Half-year earnings per share grew to 4.65 sen, from 3.46 sen.

Despite the challenges from Covid-19, SKP said it had taken relevant actions to minimise the impact of the pandemic to its operations and will continue to pay close attention to developments and evaluate their impact on the financial position, operating results and cash flows of the group.

“The group is strategically well positioned in the EMS industry and continues to pursue opportunities to grow its market share from existing customers. Notwithstanding the current market conditions, the group continues to receive enquiries from both existing and potential new customers for new projects.

“The encouraging trend towards increased demands for electrical and electronic products is expected to sustain in the near future. With this, the group’s existing capacity is projected to be utilised in near future," it said.

As a preparation for future expansion, SKP said it plans to increase its plant capacity on its newly acquired 6.4 acre-industrial land in Johor at a price of RM14.2 million.

In addition, the group is in the midst of acquiring another industrial land measuring 7.9 acres at an indicative price of RM19.9 million, it said.

Meanwhile, the group said it will continue to expand its printed circuit board assembly (PCBA), injection moulding and engineering capabilities to take advantage of a widened product portfolio.

Shares of SKP closed four sen or 2.01% lower at RM1.95 on Friday (Nov 26), giving the EMS player a market capitalisation of RM3.05 billion.