Frontken's 1Q net profit jumps 36% on higher revenue


KUALA LUMPUR: A surge in topline contribution from Frontken Corp Bhd's core businesses, coupled with effective cost controls, drove the group's earnings higher in the first quarter of the financial year.

The group said net profit leapt to RM42.35mil in the quarter under review from RM31.07mil in the year-ago quarter, on the back of a 43% year-on-year (y-o-y) jump in revenue.

Earnings per share rose to 2.56 sen from 1.96 sen in year-ago quarter.

It said in a stock exchange filing, quarterly revenue rose to RM189.81mil from RM132.56mil in the previous comparative quarter on the back of higher contributions from its Malaysian and Taiwan subsidiaries.

Revenue contribution from the group's Malaysian units surged 266% y-o-y mainly due to higher sales contribution from supply-related activities in the oil and gas business.

The Taiwan subsidiary saw an 11% y-o-y increase in revenue, as the semiconductor space continued to experience high demand and strong customer orders.

"On a like-for-like basis based on the New Taiwan Dollar, revenue from our Taiwan subsidiary would have reflected an even stronger growth of 20%," it said.

Moving forward, the group said it remains optimistic about the growth prospects in the semiconductor industry and is strengthening its operational capabilities and capacity to support growth in the segment.

"Ongoing demand across technology nodes coupled with investments in advanced manufacturing is expected to support sustained activity levels."

For the oil and gas segment, the group is encouraged by the performance of its business units and is cautiously optimistic over the outlook for 2026.

"Stronger crude oil prices continue to support activity levels across the industry. While this environment places greater demands on equipment and operations, it also creates opportunities for service providers," it said.

 

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Frontken , semiconductor , oil

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