KUALA LUMPUR (Jan 13): KESM Industries Bhd sees abundant opportunities in the semiconductor industry and will continue to focus on the automotive sector, said its executive chairman and CEO Sam Lim.
He said the company had shown resilience and achieved an improved net profit of RM7.3 million for its financial year ended July 31, 2021 (FY2021) from a breakeven position in FY2020, amid the semiconductor shortage and the pandemic.
“Moving into FY2022, we will continue to focus on the automotive market, which is a fast-growing sector in the semiconductor industry,” he said in a statement issued after the burn-in and test service company’s annual general meeting on Thursday (Jan 13).
“Not only is the volume of global car sales rising, the shift to electric vehicles and eventually self-driving cars are creating higher electronic content for automotive semiconductors,” he said.
Lim said that as technology shifts, demands for burn-in and testing for advanced driving assistance systems, powertrain and infotainment will also increase.
“These developments are driving the need for more complex communication chips as well, beyond those used in car applications which have been one of the largest growing markets in the semiconductor industry,” he said.
Lim also highlighted that KESM’s services are essential not only for the automotive industry but also for data security in protecting digital information.
He said the world has become more connected and there is a growing need for data analytics in connecting cars, smart buildings, as well as medical records, amidst a global digital transformation.
In preparation for its business growth, Lim said KESM had been investing in new equipment and additional space in Melaka.
At the AGM, KESM shareholders approved a final dividend of six sen per share, totalling RM2.6 million, bringing the company’s full-year payout to nine sen, up from 7.5 sen for FY2020.
KESM’s share price closed six sen or 0.49% higher at RM12.36 on Thursday, giving the company a market capitalisation of RM531.66 million.