Friday 29 Mar 2024
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KUALA LUMPUR (Aug 25): SAM Engineering & Equipment (M) Bhd, whose share price has jumped 120% year-to-date, has reported an improved top and bottom line growth for its first quarter ended June 30, 2021 (1QFY22), compared to a year ago.

Net profit increased 66.22% to RM11.98 million from RM7.21 million in 1QFY21, while revenue rose 18.6% to RM202.78 million from RM170.98 million.

In a bourse filing, the group attributed the better earnings to higher profit contribution from its equipment segment, which saw higher sales on the back of higher demand from semiconductor and data storage customers.

However, its quarterly earnings was partly offset by lower profit contribution from its aerospace segment, due to lower government grants and subsidies.

Earnings per share increased to 8.85 sen from 5.33 sen a year ago.

Quarter-on-quarter, however, SAM Engineering’s net profit more than halved from RM24.59 in 4QFY21, as a result of lower profit contribution from both its aerospace and equipment segments. Revenue, meanwhile, fell from RM276.43 million.

On prospects, the group said global shortages of semiconductor chips, which is expected to last until the end of 2023, should drive demand for semiconductor equipment.

“We are investing in new machines and space to meet increasing demand for our products. This also includes an expansion of our manufacturing operations in Thailand, by securing the factory which is scheduled to start mass production by December.

“In addition, we continue to explore projects with our existing and new customers,” the group added.

SAM Engineering’s share price closed down 12 sen or 0.74% to RM16.12 today, for a market capitalisation of RM2.18 billion.

 

 

Edited ByS Kanagaraju
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