KESM Industries expects uptick in auto business

“We remain cautious in the immediate term as the group still faces the potential risk of sub-optimal loading volume during the transition period,” Kenanga Research said.

PETALING JAYA: KESM Industries Bhd’s new test platforms for its automotive customers are currently undergoing certification, with the completion of RM154mil in major capital expenditure for new burn-in and test equipment, says Kenanga Research.

Based on a recent meeting with KESM, the research house said the group expects its utilisation rate for the automotive business to begin moving upwards to 70% in 2024 from its current levels of 50% to 55% in the second quarter of the financial year 2023 (2Q23).