Aemulus set to ride on robust demand

Group chief executive officer Ng Sang Beng (pic) told StarBiz the orders were from multinational companies in Malaysia and China.

GEORGE TOWN: Aemulus Holdings Bhd has secured over RM60mil worth of orders for semiconductor automated test equipment to be delivered over the next 36 months.

Group chief executive officer Ng Sang Beng (pic) told StarBiz the orders were from multinational companies in Malaysia and China.

“They will be used by customers to test chips and imaging sensors for smart gadgets like mobile phones and tablets, surveillance cameras and automobiles,” Ng said.

According to Ng, the orders secured is a record high.

“Last October, we took in about RM14mil worth of orders,” he added.

For the financial year ending Sept 30, 2022 (FY22), the group plans to invest RM9mil to expand its production floor at its Bayan Lepas plant.

“We want to increase the floor space by 50%. The expansion will help use cater to the growing automotive and smart gadget segments,” he added.

According to Ng, the automotive sector will play an increasingly important role in contributing to the group’s revenue.

“Currently, the automotive industry contributes about 20% to our revenue. We believe the contribution may reach 30% in FY23,” he said.

Aemulus factory

According to India-based 360 Research Report, the automotive test equipment market revenue will grow to US$3.47bil (RM14.52bil) in 2025 from US$2.49bil (RM10.42bil) in 2019, representing at a compounded annual growth rate of 5.6%.

“Our automotive test equipment is primarily designed to test the essential electronic components used in the interior lightings and sensors of vehicles,“ he said.

Quoting Taiwan-based Digitimes Research, Ng said smartphone shipment is expected to grow between 4% and 7% annually over the next five years, driven by the demand for 5G and low-cost smartphones in emerging markets.

“We are targeting for the smart gadget segments to contribute more in the coming quarters as we ramp up the production of our testers and sales.

“The growth driver is the rapid 5G adoption in China and the rest of the world. China is a key market of the group, generating 40% of revenue,” he said.

Ng said China would continue to waive taxes on essential semiconductor raw materials entering the country as it aimed to produce more integrated circuits on its own.

“China, we believe, will continue to focus on producing its own chips to reduce its annual spending of US$300bil (RM1.25 trillion) to import integrated circuits.

“This will require the country to purchase more automated test equipment from overseas. Aemulus’ plan is to increase its range of testers for the Chinese market,” he added

For the nine months of FY21, the group posted RM6.4mil in net profit on turnover of RM43.8mil.

“The achievement for the three quarters of FY21 is record breaking,” Ng said.

For FY20, the group posted RM3.6mil in net loss on turnover of RM19.3mil.