“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).
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