SAM Engineering posts strong FY19 profit

KUALA LUMPUR: Sam Engineering and Equipment (M) Bhd posted a strong set of financial results for the financial year ended March 31, 2019, boosted by the aerospace and equipment units.

It announced on Tuesday its net profit rose by 24.7% to RM78.51mil from RM62.92mil. Its revenue increased by 21.9% to RM754.96mil from RM618.96mil. 

“The increase in group revenue of RM136.0mil was due to the increase in revenue from the aerospace and equipment segments of RM88.9mil and RM47.1mil respectively,” it said. 

SAM Engineering added the higher revenue from the aerospace segment was due to the sales of casing products for new aircraft platforms – A320neo and B737max and pull in by customer for business jets and increase in production for aerostructures products for A320neo offset by lower deliveries for casings for older aircrafts and lower sales of prismatic parts. 

As for higher revenue from the equipment segment, it said this was due to the increase in the sales to customers from the HDD and semiconductor industry. 

The higher group profit before tax of RM22.2mil was due to the higher profit from the aerospace and equipment segments of RM7.2mil and RM15mil respectively as a result of higher revenue and net gain of disposal of land and buildings. 

In the fourth quarter, its net profit rose by 44.7% to RM22.44mil from RM15.50mil. Its revenue increased by 16.1% to RM195.76mil from RM168.52mil. EPS were 16.6 sen compared with 11.47 sen.

On the outlook, it expects revenue from the aerospace industry, which accounts for about 61% of the group revenue to remain stable. 

However, it expect revenue from the equipment business to decrease for the next quarter due to softer demand from the customers from semiconductor. 

“However, we expect the demand from the hard disk drive storage segment to increase next quarter,” it said.