KUALA LUMPUR (March 10): Betamek Bhd, the ACE Market-listed electronic manufacturing services (EMS) provider, has inked a deal to expand its vehicle electronic product offerings.

The memorandum of understanding (MOU) entered into with Singapore-based semiconductor company Krakatoa Technologies Pte Ltd is aimed at exploring potential collaboration to develop a battery management system-on-a-chip for electric vehicles, said Betamek.

Its managing director Mirzan Mahathir said the collaboration is consistent with the group's overall corporate strategy to further expand its business to provide valuable experience and know-how in the automotive EMS market.

“The MOU with Krakatoa Technologies is expected to enhance Betamek Group’s vehicle electronics product offerings and contribute positively to the company’s revenue and expand its customer base in the near future,” Mirzan said in a statement.

Betamek's net profit dropped 64.4% to RM1.65 million for the third quarter ended Dec 31, 2022 (3QFY2023), from RM4.65 million in the immediate preceding quarter, amid non-recurring listing expenses of RM2.89 million.  

Gross profit margin decreased to 16.1% from 17.73% in 2QFY2023 largely due to the appreciation of the US dollar against the ringgit.

In contrast, quarterly revenue rose 12.6% to RM54.73 million from RM48.6 million driven by higher demand for its vehicle audio video products.

Betamek's share price finished down two sen or 2.74% at 51.5 sen on Friday (March 10) with some 3.84 million shares traded. At the closing price, the group's market capitalisation stood at RM229.56 million.