KUALA LUMPUR (Nov 22): Supercomnet Technologies Bhd registered a net profit of RM7.40 million for the third quarter ended Sept 30, 2023 (3QFY2023), a 26.74% decline from RM10.1 million a year prior, due to a lower revenue. Earnings per share dropped to 0.95 sen from 1.33 sen.

Quarterly revenue fell 27.93% to RM32.53 million from RM45.14 million in 3QFY2022 due to lower orders from the industrial segment and a temporary dip in demand for the automotive segment, said the Kedah-based medical device and cable manufacturer.
 
Earnings were also impacted by higher electricity tariffs and recognition of fair value expense related to the group’s employees’ share option scheme (ESOS) of RM795,000, as well as a decline in net foreign exchange gain by RM1.14 million, the group added in a bourse filing on Wednesday.

Supercomnet declared an interim dividend of 0.5 sen per share, payable on Dec 28.

For the first nine months of FY2023, Supercomnet’s net profit fell 19.28% to RM21.72 million from RM26.91 million last year, as revenue was down 14.67% to RM103.23 million from RM120.98 million, mainly due to a decrease in revenue from all three segments — medical, automotive and industrial.

The lower nine-month profit was also due to a higher electricity tariff, one-off expenses of RM776,000 related to the group's transfer of listing to the Main Market of Bursa Malaysia, and fair value expense of RM1.59 million for the group's 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 product development.

“Thus, barring any unforeseen circumstances, the group expects the performance for the current financial year to be satisfactory," it added.

Supercomnet shares closed unchanged at RM1.33 on Wednesday, giving the group a market capitalisation of RM1.05 billion.