KUALA LUMPUR (Nov 24): Mechanical engineering solution provider Frontken Corporation Bhd sees its net profit tripled year-on-year to RM5.26 million in third quarter financial year ending on Dec 31, 2014 (3QFY14) from RM1.57 million.
This was on the back of 65.3% increase in revenue to RM85.55 million in 3QFY14, from RM50.54 million in previous corresponding quarter.
Based on its explanatory note to Bursa Malaysia today, the group attributed the improved performances from subsidiaries’ contribution in Taiwan and Malaysia.
“There was a ramp up in the semi-conductor business in Taiwan due to improved outlook in this sector,” Frontken’s explanatory note reads.
In Malaysia, according to the group, it was mainly due to the recognition of progressive revenue from ATT Tanjung Bin Sdn Bhd’s project in Tanjung Bin (Johor) coupled with higher revenue from the oil and gas division.
Frontken also noted that the disposal of investment in an associate company also significantly reduced the group’s share of losses in 3QFY14 compared with the previous corresponding period.
In the cumulative nine-month period, Frontken’s net profit ballooned to RM11.62 million, from a mere RM127,000 in preceding corresponding period; whilst revenue grew 50.35% to RM204.79 million, compared with RM136.21 million last year.
Moving forward, the group said it would continue looking for business opportunities that bode well and synergise with its current activities.
“The acquisition of 45% stake in TTES Team & Specialist Sdn Bhd (TTES) in 2QFY14 has brought in positive contribution to the group in 3QFY14, and thus enhance our confidence that the synergised effects from acquisition of TTES will continue to improve the group’s performance in 2014,” the explanatory note reads.
Nevertheless, Frontken said it will still remain vigilant in monitoring its costs so as to mitigate adverse condition, given there are still uncertainties in the domestic and overseas markets.
Frontken share price up two sen or nearly 13% to 17.5 sen today as at 3:38pm, with 37.95 million shares done, giving it a market capitalisation of RM176.14 million.- The Edge
