KUALA LUMPUR (Feb 26): Cape EMS Bhd's fourth quarter net profit fell 38.4% to RM5.50 million from RM8.93 million a year earlier, partly due to finalised tax expenses.
The electronics manufacturing services (EMS) provider also attributed the lower earnings to general operational costs incurred in the relocation of its aluminium die casting operation to a new factory and establishing a new operation team for the electric vehicle business.
Revenue for the quarter ended Dec 31, 2023 (4QFY2023) rose 25.0% to RM147.74 million from RM118.20 million in 4QFY2022, the group’s exchange filing on Monday showed.
For the full year, Cape EMS recorded a net profit of RM44.38 million, up 32.3% from RM33.54 million in FY2022, as revenue climbed 23.9% to RM542.84 million from RM437.95 million.
The group said the increase in revenue was mainly attributable to the increase of sales from the group’s EMS segment for both industrial and consumer electronic products, particularly in wireless communication equipment and electronic cigarettes respectively.
"During the financial year under review, the group successfully secured a new customer for EMS of industrial electronic products for thermal energy devices, which contributed to the positive sales momentum," it said.
Moving forward, Cape EMS said it is actively working towards adopting an asset-light manufacturing approach, combining both online and offline capabilities.
"This strategic shift enhances operational efficiency, reduces capital expenditure, and positions the company to quickly adapt to market changes," the group said.
It added that the extension of its capabilities into green technology solutions aligns with the growing demand for sustainable practices.
"This expansion, particularly in battery pack manufacturing, not only taps into an expanding market but also reflects a commitment to environmental responsibility," the group added.
Cape EMS shares closed down three sen, or 2.59%, at RM1.13, for a market capitalisation of RM1.12 billion.