Sam Engineering records higher 2Q FY24 net profit of RM32.63mil

KUALA LUMPUR: Sam Engineering & Equipment (M) Bhd’s net profit for the second quarter ended Sep 30, 2023 (2Q FY2024) rose to RM32.63 million from RM26.94 million in the same quarter last year.

Revenue increased by RM22.1 million to RM428.62 million from RM406.52 million previously.

In a filing with Bursa Malaysia, Sam Engineering said the higher 2Q group revenue posted was due to a RM33.8 million increase in revenue from its aerospace segment, which was offset by a RM11.7 million decrease from the equipment segment.

"The higher revenue from the aerospace segment was mainly due to an increase in sales of casing products.

"For the equipment segment, the lower revenue was mainly due to a decrease in demand from the data storage customers. The higher profit from both segments was due to higher sales of higher margin products and favourable foreign exchange translation offset with higher interest expenses,” it said.

Sam Engineering said net profit for the first half (1H) of its FY2024 ended Sept 30, 2023, improved to RM53.16 million from RM50.47 million last year while revenue decreased to RM736.51 million from RM760.49 million.

It said the lower group revenue was due to the decrease in revenue from the equipment segment of RM89.1 million, offset by an increase in revenue from the aerospace segment of RM65.1 million.

"The lower revenue from the equipment segment was mainly due to a decrease in demand from the data storage customers offset with favourable foreign exchange translation.

"For the aerospace segment, the higher revenue was mainly due to an increase in sales of casing and aerostructures products and favourable foreign exchange translation,” it said.

Moving forward, the company said the International Air Transport Association (IATA) reported that air passenger travel has recovered to about 97 per cent of pre-pandemic level as of September 2023, with net orders for commercial aircraft received by Airbus and Boeing growing steadily over the past few months with order backlogs stretching to 10 years and seven years, respectively.

"Our products are being used in these aircraft, and we expect recovery of our aerospace business to pre-pandemic levels,” it said.

Sam Engineering also cited a report from Semiconductor Equipment and Materials International (SEMI), which opined that global sales of fab equipment by original equipment manufacturers (OEMs) would bounce back to US$97 billion in 2024 from a projected contraction of US$84 billion in 2023. (US$1 = RM4.68)

"The optimism assumes that the semiconductor inventory correction will end by 2023 and demand for such semiconductors will commence to recover in 2024.

"Our new production facilities in Thailand are well-positioned to support this projected ramp,” Sam Engineering added. - Bernama

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