Frontken posts lower Q4 profit on higher taxation

PETALING JAYA: Semiconductor firm Frontken Corp Bhd reported a net profit of RM18.2 million for its fourth quarter ended Dec 31, 2019, a 2.6% decline from RM18.68 million in the previous corresponding period, due to higher taxation and lower other operating income.

Revenue for the quarter was flat at RM88.89 million against RM88.67 million reported previously.

Frontken told Bursa Malaysia that its subsidiaries in Taiwan and Malaysia recorded a higher revenue during the quarter as its customer ramped up production in Taiwan and improvement in oil and gas subsidies in Malaysia.

However, its subsidiaries in Singapore and the Philippines saw a lower revenue due to operational issues experienced by their customers that resulted in some works being requested to be put on hold.

For the full financial year, Frontken’s net profit expanded 32.4% to RM69.17 million from RM52.26 million a year ago, while revenue rose 3.9% to RM339.91 million from RM327.22 million.

Commenting on the prospects, Frontken believes that the global demand for semiconductors, which remains strong in the long term, will continue to grow.

Meanwhile, Frontken noted that the improved performance in its oil and gas business in 2019 augurs well for its business in the next few years as it was appointed as one of the panel contractors for the provision of manpower supply and also mechanical rotating equipment services and parts for Petronas.