Mi Technovation Q1 earnings up 50% on higher sales

KUALA LUMPUR: Mi Technovation Bhd’s net profit rose almost 50% to Rm10.29mil in the first quarter ended March 31 from Rm6.87mil a year ago driven by higher sales revenue, lower commission payable to external sales agent and foreign exchange gain.

In a filing with Bursa Malaysia, the company said there was also an increase in general and administrative expenses for the quarter due to headcount increase, depreciation and maintenance cost of Bayan Lepas factory.

However, it added that increased expenses were offset by the higher profits of the group.

Mi Technovation’s revenue also jumped 19.5% to Rm35.24mil in the quarter from Rm29.48mil a year ago due to stronger demand from North-east Asia region customers resulting from the growth in capital investment from certain outsourced semiconductor assembly and test providers in the advanced wafer level packaging segment.

Although the group has not experienced significant order reductions, it expected the first half of the year to remain status quo as most of its customers have not revised their capital expenditure budgets.

For the second half of this year, the group noted there is still “little visibility” as its customers adopt a wait-and-see approach due to the timing for Covid-19 pandemic containment and trade war tensions.

“The contraction is mainly driven by the supply side as the industry has witnessed supply chain disruptions stemming from lockdowns and restrictions. We expect this is to be short term in nature and pent-up demand will resurface when the situation improves. Although our industry may experience some uncertainties in the medium term for the coming one or two quarters, the longterm positive outlook has been made clearer by the pandemic,” it said.