KESM earnings for third quarter rise to RM 10.6mil
PETALING JAYA: KESM Industries Bhd’s net profit for the third quarter ended April 30 rose 40% to RM10.6mil compared to the previous corresponding quarter on higher demand for burn-in and test services.
In a filing with Bursa Malaysia yesterday, the company said revenue during the quarter increased to RM85mil from RM70.77mil.
“Employee benefits expense increased by RM2.6mil or 11%, mainly due to adjustments of wage rates and higher staff compensation to support the increased revenue,” the company said.
“Depreciation was higher by RM4.1mil or 31%, as additional machinery and test equipment were installed during the financial period.
“Other expenses were higher by RM4mil or 24%, mainly due to higher expenses on repair and maintenance by RM2.3mil and management fees of RM1.4mil.”
For the nine-month period, KESM’s net profit grew to RM30.59mil from RM22.64mil in the previous corresponding period, while revenue improved to RM248.22mil from RM211.21mil a year earlier.
“Employee benefits expense increased by RM12.2mil or 17%, mainly due to adjustments of wage rates and higher staff compensation to support the increased revenue, improved staff welfare, training and skills upgrading to raise productivity and production efficiency.
Other expenses were higher by RM10mil or 21%, mainly due to higher expenses on repair and maintenance by RM5.6mil and utilities by RM1.7mil to support the increased revenue, and higher professional fees by RM700,000.”
On its prospects, KESM estimates that world-wide semiconductor revenue would reach US$386bil (RM1.66 trillion) this year.
“This represents an increase of 12.4% from 2016, and an upside adjustment from the previous forecast of 7.2% because of improvements in the semiconductor memory segment.
“The global economy is also gaining momentum and growth is expected to rise from 3.1% in 2016 to 3.5% in 2017, up from the previous forecast of 3.4%.
On the back of these positive developments, the group expects a sustainable performance.”