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Tuesday, September 20, 2016

KESM's 4Q net profit falls 23%, proposes 3 sen dividend

KESM's 4Q net profit falls 23%, proposes 3 sen dividend
By Gho Chee Yuan / theedgemarkets.com | September 20, 2016 : 6:12 PM MYT

KUALA LUMPUR (Sept 20): KESM Industries Bhd's fourth quarter net profit fell 23% to RM8.05 million or 18.7 sen per share, from RM10.45 million or 24.3 sen per share a year earlier, due to higher employees expenses and other expenses.

Revenue for the quarter ended July 31, 2016 (4QFY16) rose 8.1% to RM74.53 million from RM68.94 million, driven by higher demand for burn-in and test services.

The electronic component testing specialist group, in a filing to Bursa Malaysia, proposed a three sen dividend amounting to RM1.29 million.

Despite the lower quarterly earnings, KESM's full year (FY16) net profit jumped 80.2% to RM30.68 million or 71.3 sen per share, from RM17.03 million or 39.6 sen per share for FY15. Revenue rose 8.6% to RM285.73 million from RM263.12 million.

Going foward, KESM said it remains focused on enlarging its targeted segment to drive growth, enhance its core competencies and manage resources efficiently to offer value-added services to its existing and new customers.

Commenting on this, KESM executive chairman and chief executive officer Sam Lim said the demand was particularly strong for its burn-in and test services of automotive chips.

"In consideration of KESM's outstanding performance, a special interim dividend of RM1.94 million was paid in August 2016," he added.

"We are just at the starting point of an exciting road ahead focusing on our strategic plans. Our customers are rolling out new devices and solutions to meet the growing demands by the car makers.

"We see great potentials as increasing new automotive devices are required for added features in the evolution of cars and our opportunities will remain as the demand grows," Lim said.

Shares in KESM gained three sen or 0.38% to close at RM8 today, valuing the company at RM342.4 million.

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