Frontken 2Q earnings climb to RM24.74mil on strong semiconductor demand

KUALA LUMPUR: Frontken Corp Bhd's net profit rose 21.69% to RM24.74mil in the second quarter ended June 30, 2021, from RM20.33mil in the previous comparative quarter due to an increase in contributions from its Taiwan, Malaysia and Singapore subsidiaries.

The semiconductor manufacturing services provider said revenue was up 23.97% year-on-year (y-o-y) to RM108.63mil from RM87.62mil as volume in the semiconductor space picked up on higher demand and strong orders from a customer of its Taiwan subsidiary.

It added that its Philippines subsidiary also achieved an improved business performance due to new works secured.

Excluding the job support subsidy received last year and the foreign currency exchange impact, the current quarter's earnings performance would have been 40.3% improved over the same quarter last year, said Frontken.

Over the six months to June 30, the group's net profit was RM47.65mil, 27.63% higher y-o-y, on revenue of RM212.14mil, 22.99% improved over the previous corresponding period.

With predictions of strong growth in the semiconductor industry, the group plans to expand its capacity in Taiwan with a new state-of-the-art facility, in ancicipation of increased demand in services relating to tools involved in the manufacturing of the most advanced chips.

Meanwhile, it is cautiously optimistic over a better performance for its oil and gas division, and will attempt to secure new orders following the strong recovery in Brent crude oil prices.

"We believe our soon to be completed new facility in Pengerang, to support the contracts we have with our customers, will also help to contribute to the growth of our oil and gas division," it said.
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