KUALA LUMPUR (Nov 14): NationGate Holdings Bhd saw its net profit and revenue drop by over 40% year-on-year in its third quarter ended Sept 30, 2023 (3QFY2023), amid slower demand for the group’s electronic manufacturing services (EMS), especially from networking and telecommunication customers.

Net profit dropped by 42.5% to RM17.28 million or 0.83 sen per share for 3QFY2023, from RM30.05 million or 1.83 sen per share in 3QFY2022, the group disclosed in its stock exchange filing on Tuesday.  Revenue fell by 45.7% to RM165.58 million from RM305.17 million.

NationGate declared an interim dividend of 0.25 sen per share, with the entitlement and payment dates to be announced.

The group’s net profit for the first nine months of the year (9MFY2023) declined by 29% to RM44.89 million from RM63.09 million in the previous corresponding period, as revenue fell 36% to RM466.72 million from RM731.17 million.

Although global semiconductor demand is slower this year, NationGate believes its prospects remain favourable, given the group’s competitive strengths and business strategies.

“The fast-paced nature of the E&E (electrical and electronics) industry, coupled with the continuously changing technological landscape globally, the group’s relentless efforts in bringing [itself] up the value chain of the manufacturing services rendered shall keep us ahead in this competitive market,” it said.

“The group intends to continuously strive for technological advancement and cost-effectiveness and build a strong collaboration in its supply chain ecosystem to better position itself in the EMS market,” it added.

When NationGate was listed on the ACE Market on Jan 12 this year, its RM165.5 million initial public offering was priced at 38 sen per share.

When the market closed on Tuesday, the stock settled unchanged at RM1.21 — over three times its IPO price — giving it a market capitalisation of RM2.51 billion.