Frontken 1Q profit rises to RM15m

By FARAH AISYAH

Frontken Corp Bhd’s net profit for the first quarter ended Mar 31, 2019 (1Q19), has increased to RM15.4 million, from RM6.3 million a year ago, as a result of an improved revenue and a RM10,000 foreign-exchange (forex) gain.

In addition, the company recorded a forex loss of RM60,000 in the same quarter last year.

Frontken posted higher earnings per share for 1Q19 at 1.47 sen, from 0.6 sen in the previous year.

Its quarterly revenue also rose 18.2% year-on-year (YoY) to RM83.83 million, from RM70.92 million in 1Q18, mainly due to higher contributions from subsidiaries in Malaysia, Singapore, Taiwan and the Philippines.

Frontken noted that the growth was mainly due to the positive growth of the semiconductor business in Singapore and Taiwan, and oil and gas (O&G) in Malaysia and the Philippines.

The group said it achieved a remarkable 1Q19 compared to the preceding year’s corresponding period, mainly attributable to the positive growth in both its semiconductor and O&G businesses.

Although the general outlook for the semiconductor industry is somewhat tepid, the recent positive development following the settlement of a long outstanding dispute by major players in this sector had somewhat boosted the outlook.

“Therefore, moving forward, we believe it will be positive for us,” Frontken noted in an exchange filing yesterday.

As for the O&G industry, the group said the number of enquiries had increased which it hopes would be translated into orders. 

While the group anticipates that the overall business conditions in the remaining three quarters of the current financial year to remain challenging, it is cautiously optimistic that its performance for the remaining months will be satisfactory.

“We will continue to be vigilant in our cost management and continually explore ways to improve on our efficiency. Our priority will be to continue to focus our attention on the quality of our services and efficiencies to maintain our competitiveness,” it added.

The counter closed three sen or 2.34% higher at RM1.31 yesterday, giving it a RM1.38 billion market capitalisation.