KESM Industries sees lower earnings in Q4

PETALING JAYA: KESM Industries Bhd saw a 15.6% decline in net profit to RM11.32 million for the fourth quarter ended July 31, 2018 against RM13.4 million in the previous corresponding period, mainly due to lower demand for burn-in, testing and electronic manufacturing services.

Its revenue also fell 5% to RM85.27 million from RM89.77 million.

The group has proposed to declare a final dividend of 6 sen per share amounting to RM2.6 million for the quarter under review.

KESM’s full-year net profit dropped 10.6% to RM39.34 million from RM43.99 million, while revenue expanded 3.5% to RM349.78 million from RM337.99 million.

The group said while the broad indices of the semiconductor industry and global growth are positive, it could be disrupted by the escalation of trade wars between major economies and uncertainties inflicted on cross border mergers and acquisitions seen in the semiconductor industry.

“These risks may impact the steady flow of material supplies for our burn-in and test services. Nonetheless, the group is relentlessly streamlining its operations to better position itself for business volatility.”

Its shares were unchanged at RM17.10 on 41,00 shares traded.

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