By LYDIA NATHAN / Pic source inariberhad.com
INARI Amertron Bhd posted a net profit of RM90 million for the second quarter ended Dec 31, 2020 (2Q20), compared to RM37.5 million posted in 2Q19, primarily attributed to significantly higher revenue in the radio frequency (RF) business and recognition of deferred tax assets despite higher foreign-exchange (forex) losses in the current quarter.
Revenue for 2Q increased to RM376 million compared to the RM265.4 million recorded for the same quarter last year due to higher sales volume generated by RF business.
For the financial year 2020 (FY20), the group recorded higher revenue of RM724.4 million from RM582 million in the previous year.
Its profit also jumped from RM85.2 million to RM160.1 million due to higher revenue offset by less favourable forex rates.
The group proposed its second single-tier interim dividend of 2.5 sen per ordinary share in respect of the financial year ending June 30, 2021.
The group said it anticipates positive demand this year from the 5G smartphones, as the pandemic continues to influence consumer behaviour in shifting towards higher purchases of technology devices.
“The group is optimistic about the earnings for FY21 and at the same time, will continue to improve its production capacity tapping on the strong growth momentum in 5G mobile phones.”
“The group is also cognisant of the ongoing shortages in certain sectors of the semiconductor market and have taken steps to secure on a risk management basis our requirements for raw materials supplies ahead,” it said.
Meanwhile, another company within the electrical and electronics appliances industry, Uchi Technologies Bhd, has recorded a net profit increase of RM32.3 million for 4Q20 compared to RM19.7 million posted in 4Q19. Revenue for the quarter under review stood at RM53.56 million for 4Q20 compared to RM39.44 million for 4Q19.
In a statement to the exchange yesterday, Uchi Technologies noted that for its FY20, it saw its revenue decrease 1% from RM156.7 million to RM155.2 million in FY19 due to lower sales volume in consequence of the unfavourable global economic condition and the impact of Covid-19 pandemic.
Its profit for FY20 went up from RM75.9 million to RM83.8 million.
The group expects a low single-digit growth in revenue this year but is confident it will remain profitable.
“We do not expect any significant changes in our principal geographical areas of distribution and product group contributions. Factors that will affect our performance include fluctuations in the US dollar, material shortages or fluctuations in material prices and increasing labour costs,” it said.