KUALA LUMPUR (Aug 21): Electronics manufacturing services (EMS) provider Cape EMS Bhd reported a net profit of RM15.16 million for its second quarter ended June 30, 2023 (2QFY2023), on the back of a revenue of RM121.78 million.

There are no comparative year-on-year figures as the group was only listed on Bursa Malaysia’s Main Market on March 10, 2023. The group’s board of directors declared a first interim single-tier dividend of 0.55 sen per share, payable on Sept 29, 2023, its bourse filing showed.

Compared with the preceding quarter of 1QFY2023, Cape EMS’s net profit has increased 78.38% from RM8.5 million, despite lower revenue, largely due to higher finance income from higher interest income received, and favourable exchange movements between the ringgit and US dollar.  

The group's revenue dropped 11.34% quarter-on-quarter from RM137.35 million, on lower sales recorded from new customers in industrial electronic products of thermal energy devices, which was partially moderated by an increase in orders for industrial electronic products — particularly in wireless communication equipment.

For the first six months of FY2023, Cape EMS made a net profit of RM23.66 million, with a revenue of RM259.13 million.  

In a statement, Cape EMS managing director cum group chief executive officer Tee Kim Chin said the group has been actively exploring various emerging trends to secure the next potential pipelines that could serve as the growth catalyst for its future, in line with the group’s intention to diversify its product mix and grow its customer base. 

“Year-to-date, we have seen an increase in orders from our existing customers as well as onboarded new customers. We have also been continuously optimising our daily operations to implement cost-saving measures, thereby strengthening our profitability without compromising on the quality of our business offerings. 

"We remain dedicated towards business expansion and we foresee the EMS industry will continue to remain as a vital pillar given its link to various emerging industries providing ample opportunities to unlock value for our stakeholders,” said Tee.

At Monday’s closing bell, Cape EMS' shares closed eight sen or 6.96% higher at RM1.23 — 36.67% higher than its initial public offering price of 90 sen but down 18% from its maiden trading day's close of RM1.50 — giving the group a market capitalisation of RM1.14 billion.