by AZALEA AZUAR / TMRgraphic
FRONTKEN Corp Bhd posted RM32.2 million net profit for the second quarter ended June 30, 2022 (2Q22), a 30.17% increase compared to RM24.74 million in the same period last year.
The improved performance was attributable to improved revenue and better profit margins.
Its revenue shot up 18.02% to RM128.2 million the same quarter from RM108.63 million in 2Q21 supported by bigger contributions from the group’s subsidiaries in Taiwan, Malaysia and Singapore.
“Volume in the semiconductor space picked up significantly due to higher demand and strong orders from our customers which benefited our Taiwan subsidiary,” it said in a Bursa Malaysia filing today.
Frontken added that new order provisions of manpower supply and mechanical rotating equipment services from different contracts with Petroliam Nasional Bhd has helped improve their local business.
Its Singapore subsidiary also benefitted from its oil and gas business improvement.
“Against the same period last year, the profit after tax increased by approximately RM8.1 million (30%) as a result of improved revenue and better profit margin resulting from the continual efforts to improve efficiency across the group,” it added.
With a strong growth of 26.2% in the semiconductor market last year, the World Semiconductor Trade Statistics expects the global market to grow up to US$646 billion (RM2.87 trillion) or by 16.3%.
The market is also forecasted to continue growing in 2023.
“We believe the persistent high demand of chips will be positive for our semiconductor business in years to come where continuing high demand for the same will necessitate more chip research, design and manufacturing in the years ahead.”
On the other hand, Frontken remains cautiously optimistic that its business this year will be stronger than in 2021, due to increasing contracts for manpower and mechanical rotating equipment services and parts.