KUALA LUMPUR (Aug 22): Supercomnet Technologies Bhd’s (Scomnet) net profit for the second quarter ended June 30, 2023 (2QFY2023) fell 22.36% to RM7.3 million, from RM9.4 million a year earlier, due to lower revenue from all its segments, higher electricity tariff and recognition of RM790,000 for fair value expense related to share options granted under employees share option scheme (ESOS).
Scomnet, which makes medical devices and cables and wires for the medical, automotive and industrial sectors, said its earnings per share dipped to 0.94 sen from 1.23 sen last year, according to its filing.
Consequently, its quarterly revenue declined 16.38% to RM33.33 million from RM39.86 million due to the decrease in demand from all three segments, especially for the industrial segment. While another two segments were medical and automotive segments.
For the cumulative six months ended June 30, 2023, its net profit dropped 14.79% to RM14.32 million from RM16.81 million in the same period last year, as revenue fell 6.78% to RM70.7 million from RM75.84 million.
Scomnet said its cumulative six months' earnings were dragged by the decrease in revenue from medical and industrial segments, one-off expenses of RM590,000 related to the transfer listing of its share capital to Main Market of Bursa Malaysia, and recognition of RM790,000 for fair value expense related to share options granted under ESOS.
Moving forward, the group said it remains optimistic with its mid- to long-term prospects and will continue to work closely with existing and new customers on new products development.
"Thus, barring any unforeseen circumstances, the group expects the performance for the current financial year to be satisfactory," it said.
Scomnet shares settled up one sen or 0.74% to RM1.36 on Tuesday (Aug 22), valuing the group at RM1.07 billion. The counter has fallen 13.38% year-to-date.