KUALA LUMPUR (July 27): Mi Technovation Bhd reported a 4.17% increase in its net profit for the second quarter ended June 30, 2020 (2QFY20) to RM18.1 million from RM17.38 million a year earlier, on higher sales, which pushed its revenue up.
In a filing to Bursa Malaysia today, the group said its quarterly revenue grew 34.23% to RM61.92 million from RM46.13 million previously. “This (increase in revenue) was mainly due to stronger demand from our customers in the Northeast Asia region, resulting from the growth in capital investment from certain outsourced semiconductor assembly and test companies (OSATs) in the advanced/wafer level packaging segment,” the Penang-based semiconductor industry equipment provider said.
However, despite the significant revenue jump, the group said its profit only grew marginally due to increased fixed costs on new factories in Bayan Lepas and Batu Kawan, higher commission payable to external sales agents (due to changes in geographical sales mix), as well as foreign exchanges losses from depreciation of the US dollar against the ringgit.
The group’s cumulative revenue for the financial period ended June 30, 2020 stood at RM97.16 million, 28.49% higher than revenue for the previous corresponding financial period at RM75.62 million. Net profit for the period was at RM28.28 million, up 16.63% from RM24.25 million previously.
Mi Technovation expects a challenging year ahead, but said the pandemic has created opportunities to capture rising demand.
“The intermission or pause created by the pandemic and trade war has given the Mi Technovation group the opportunity to position itself and build the necessary infrastructure to capture the demand upswing, which could be a sharp rebound post-pandemic.” the group said.
“We are clear on our strategy in pursuing long term goals in the direction the market is heading. With both Home 1 and Home 2 completed and our technology centres in Malaysia, Korea and Taiwan operational, we are ready to capture the upswing in the market,” the group said.
Mi Technovation shares closed 11 sen or 2.89% lower at RM3.70 today, valuing the semiconductor firm at RM2.764 billion. Around 7.66 million shares were transacted.
Year-to-date, the counter has almost doubled from RM1.91; with an all-time high of RM3.90 reached on July 22.