QES Group optimistic on stable earnings

QES Group Bhd remains optimistic about registering stable earnings in the quarters ahead on the back of sustained demand from automotive and industrial applications.

For the third quarter ended Sept 30, 2022 (3Q22), the automated test equipment manufacturer’s revenue was up 39% year-on-year (y-o-y) to Rm72mil, from Rm51.7mil previously. Net profit also rose by 152.1% y-o-y to Rm9.5mil from Rm3.8mil in 3Q21.

Basic earnings per share for the quarter stood at 1.14 sen, versus 0.45 sen previously.

In a filing with Bursa Malaysia, QES attributed the results to higher sales generated from both its distribution and manufacturing divisions. The said segments saw an increase of 29.6% or Rm13.9mil, as well as 130% or Rm4.9mil, respectively.

The group further noted that higher revenue in the distribution division was underpinned by an increase in deliveries of equipment, while growth in the manufacturing division was driven by higher sales of handling and measurement equipment to semiconductor customers.

While domestic sales surged by 75.6% from Rm31.9mil in 2Q22, the group’s revenue from Singapore jumped by 193.5% quarter-on-quarter to Rm18.2mil.

QES managing director and president Chew Ne Weng noted that demand in the semiconductor industry will be supported by the development and proliferation of electric vehicles, 5G, artificial intelligence, data centres and the Internet of Things.

“It is encouraging to see the continued momentum in the semiconductor industry, which has inevitably led to QES recording a remarkable year for 2022.

“Although the semiconductor industry’s recent outlook has been downgraded, especially for memory, personal computer, and mobile phone applications, we continue to see demand from automotive and industrial applications,” he said in a statement yesterday.