KUALA LUMPUR (May 21): Cape EMS Bhd’s (KL:CEB) net profit jumped 58% to RM13.41 million or 1.35 sen per share in the first quarter ended March 31, 2024 (1QFY2024), from RM8.5 million or 1.07 sen per share a year ago, on better performance from its industrial and consumer electronic manufacturing services (EMS) segments.
Quarterly revenue increased more than 12% to RM154.48 million from RM137.35 million after the group saw increased demand for its EMS products, particularly in wireless communication equipment, electronic cigarettes and light electric vehicle segments.
Cape EMS also declared a first interim single-tier dividend of 0.67 sen per ordinary share for the financial year ending Dec 31, 2024 (FY2024), amounting to RM6.6 million, which is to be paid on Aug 15, 2024 to the shareholders listed in the group's record of depositors on July 29.
On its outlook, the group said its newly ventured light electric vehicle business will bring in additional revenue and earnings for the group.
It also cited challenges in its business, including the intensified US-China trade tension recently, latest Iran-Israeli conflict and Red Sea shipping crisis.
In a separate statement, Cape EMS managing director and group chief executive officer Christina Tee Kim Chin said, "Following the completion of the acquisition of iConn Inc in January 2024, we have since started our transition towards an asset-light manufacturing model by integrating online and offline capabilities together.
"This transition will help strengthen our market position by [increasing] our attractiveness to current and prospective customers. This acquisition also enables us to reduce massive capital expenditure and enhance our market adaptability.
"Furthermore, we have been actively expanding into green technology solutions, particularly in the manufacturing of battery pack for electrical vehicles. This division is expected to grow consistently in future given the push towards the adoption of more environmentally friendly mobility mode globally."
At market close, Cape EMS shares closed unchanged at RM1.04, valuing the company at RM1.03 billion, with 20.52 million shares changed hands.