KESM returns to profit in FY26 on stronger AI chip demand


PETALING JAYA: KESM Industries Bhd expects continued investments in quality systems, operational excellence and productivity to strengthen the group's ability to meet the increasing complexity and performance requirements of artificial intelligence (AI)-related chips

For the fourth quarter ended July 31, 2026 (4Q26), the outsourced semiconductor assembly and test provider’s net profit expanded by more than 11-fold year-on-year (y-o-y) to RM2.81mil or earnings per share of 6.53 sen.

This was mainly attributable to higher revenue and a decrease in fair value loss on investment securities, which was partially offset by a decline in net gain on disposal of property, plant and equipment and an increase in foreign exchange loss.

Revenue rose by 15% y-o-y in 4Q26 to RM61.51mil, largely driven by higher demand for its services in processing AI-related chips.

For the financial year ended July 31, 2026 (FY26), KESM recorded a net profit of RM9.45mil from a previous net loss of RM8.19mil in FY25. The group’s revenue was up by 6% y-o-y to RM222.78mil.

In a filing with Bursa Malaysia, KESM said the group’s other income in 4Q26 increased by RM2mil mainly due to a higher gain on disposal of machinery and test equipment of RM1.6mil and a higher gain on disposal of spares by RM200,000.

KESM declared a second interim tax-exempt dividend of 4.5 sen per ordinary share, payable on Oct 29, 2026 with the ex-date on Oct 6, 2026.

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