Frontken’s 2Q20 earnings up 23.1% at RM20.33m

by FARA AISYAH / pic by TMR GRAPHIC

Frontken Corp Bhd’s net profit for the second quarter ended June 30, 2020 (2Q20) rose 23.1% to RM20.33 million from RM16.52 million a year ago, mainly on stronger revenue and better profit margin resulting from continuous efficiency improvement efforts.

Revenue increased 9.3% to RM87.62 million in 2Q20 from RM80.14 million last year, mainly contributed by positive growth of the group’s semiconductor business in Taiwan.

This was the firm’s historical best quarterly performance, Frontken said in an exchange filing yesterday. It sees advancement and deployment of new technologies following the global rollout of 5G, which bodes well for its business.

Nevertheless, overall business conditions for the remaining six months of 2020 will continue to be uncertain amid downside risks due to the potential second wave of Covid-19.

The group declared a first single tier dividend of 1.2 sen, with entitlement and payment dates to be announced later.