Cnergenz posts uptick in Q2 profits amid improved sales

KUALA LUMPUR: A global uptick in semiconductor sales and growing demand for Cnergenz Bhd's solutions and products bode well for the prospects of the company, says Cnergenz Bhd CEO Lye Yhin Choy, as he announced a sequential jump in profits in the second quarter of 2022.

"We continue to see a steady inflow of orders in the recent quarter for our integrated solutions and standalone SMT machines and equipment in the Malaysian, Thai and Vietnamese markets where we operate despite the global headwinds that the technology sector is encountering.

"This is attributed to the gradual reopening of economies in these countries which have contributed to increased sales and new enquiries for our products and solutions," he said in comments accompanying the announcement of its second quarter earnings.

The Penang-based electronics manufacturing solutions provider, which made its debut on the ACE Market on May 24, 2022, said on Wednesday it recorded a net profit of RM9.3mil, bringing its year-to-date net profit to RM12.94mil.

Revenue for the quarter was RM76.58mil, taking its first half net profit to RM113.48mil.

Earnings per share stood at 2.22 sen for a six months total of 3.09 sen.

According to the group, there was higher sales of standalone surface mount technology machines and provision of integrated solutions due to continued demand from manufacturing activities in the electronics and semiconductor industries.

On a segmental basis, standalone SMT machines and equipment sales contributed 51.03% of the total revenue while the provision of integrated solutions contributed 44.85% in 2QFY2022.

Lye said the company has entered into a conditional sales and purchase agreement with the Penang Development Corp for the acquisition of a parcel of industrial land in Penang

"Upon completion of the acquisition, we intend to embark on the construction of our new facility by channeling our initial public offering proceeds, which will enable us to scale up our operations, develop and market a wider range of smart manufacturing solution offerings," he said.

As at June 30, 2022, Cnergenz secured purchase orders amounting to RM72.6mil, of which RM61.16mil are expected to be fulfilled by end-2022 and RM11.44mil are expected to be fulfilled by end-2023.

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