QES takes over Nikon Malaysia’s industrial metrology business

by PRIYA VASU / pic credit: nikon.com.my

QES Group Bhd’s wholly-owned subsidiary QES (Asia-Pacific) Sdn Bhd (QAP) has been appointed to take over Nikon Corp’s industrial metrology business (IMB) in Malaysia effective Jan 1, 2021.

The appointment was announced by Nikon following the decision to cease its Malaysian unit Nikon (M) Sdn Bhd operations by year-end.

QAP is principally involved in the distribution of inspection, test and measurement equipment across Asean countries. It is currently the authorised distributor for Nikon Malaysia’s IMB.

QES MD/president Chew Ne Weng said Nikon Malaysia and QES have been key partners since 2009.

The appointment will see QES further strengthening their sales and after-sales service support.

“Nikon’s products have consistently maintained as one of the top three suppliers’ of QES. We are honoured to be appointed to take over Nikon’s IMB in Malaysia,” he added.

QES is principally involved in the distribution of inspection, test and measurement equipment, materials and engineering solutions.

It also manufactures optical inspection equipment, automated handling equipment as well as advanced wafer measurement system.

QES currently distributes a comprehensive range of products from renowned international brands and has sales and service offices covering the Asean region and Hong Kong.

To date, QES has more than 2,400 customers and installed a base of more than 11,000 units of equipment spread across Asean and Malaysia for its customers mainly from the electrical and electronics, automotive and semiconductor industries.

The group posted a net profit of RM2.57 million in the second quarter (2Q) ended June 30, 2020, against a net loss of RM1.52 million for the same period last year on the back of improved profit before tax recorded due to higher revenue and gross profit margin generated by the manufacturing division and lower operating cost due to restricted travelling and government subsidies of wages for Malaysia and Singapore.

QES recorded a revenue of RM38.88 million for the quarter under review against RM40.51 million in the corresponding quarter last year, representing a marginal decrease of 4%.

The decrease was mainly due to a drop in sales by RM4.16 million from the distribution division notwithstanding an increase of RM2.53 million from the manufacturing division.

In a filing to Bursa Malaysia in August, QES said the decrease in revenue from the distribution division was mainly due to a slowdown in sales of all major QES distribution equipment.

The primary reason for the slowdown in 2Q was due to the lockdown arising from the Covid-19 pandemic which affected shipments as well as travelling by its engineers.

The increase of revenue from the manufacturing division was due to better sales of inspection and automated handling equipment from semiconductor customers as compared to the corresponding quarter last year.

Read our earlier report here