“The results are consistent with our projection of a soft financial year for 2022 as the demand for consumer electronics came off its pandemic-induced peak, coupled with supply chain disruptions and shortages of integrated circuits,” says Kenanga Research.
PETALING JAYA: Kumpulan Perangsang Selangor Bhd
(KPS) is expected to post bumper fourth-quarter results for the financial year 2022 (4Q22) due to the end of the year shopping season that will boost demand for consumer electronics, says Kenanga Research.
This is despite the group’s recent nine-month core net profit of RM24mil in 2022, which came in at only 68% of the research house’s full year forecast and consensus estimates.
“The results are consistent with our projection of a soft financial year for 2022 (FY22) as the demand for consumer electronics came off its pandemic-induced peak, coupled with supply chain disruptions and shortages of integrated circuits,” Kenanga Research said in its latest report.
The research house also maintained its forecasts that the projected FY22 net profit will contract 13% on a flattish turnover given that demand for consumer electronics has dipped.
This is coupled with ongoing supply chain disruptions due to lockdowns in China, arising from Beijing’s zero-Covid policy, as well as shortages of materials, including integrated circuits.
“However, we expect the situation to improve significantly in FY23, spurring a 14% growth in net profit on the back of a 5% increase in turnover,” added Kenanga Research.
