KUALA LUMPUR (Aug 16): Semiconductor equipment solutions provider Mi Technovation Bhd (KL:MI) saw its net profit rise 21.3% to RM27.6 million for the second quarter ended June 30, 2024, from RM22.7 million in the same period last year, on the back of higher revenue.

Earnings per share rose to 3.09 sen from 2.54 sen previously, the group's bourse filing showed. This is the group's best quarterly net profit performance since it was listed on the Main Market of Bursa Malaysia in 2018.

Quarterly revenue increased 51.3% year-on-year to RM127.2 million from RM84.1 million.

Mi Technovation said 56.6% of total revenue for the quarter came from its semiconductor equipment business unit, with 41.2% from its semiconductor material business unit.

The group declared a first interim dividend of 2.5 sen per share, payable on September 18, with an ex-date of August 29.

For the six-month period ended June 30, 2024, Mi Technovation’s net profit jumped 86.6%  to RM54.4 million from RM29.1 million in the same period last year, as revenue increased 45.6% to RM243.3 million from RM160.9 million.

Looking ahead, Mi Technovation said the semiconductor industry is not expected to fully recover this year due to trade protectionism, regional conflicts, inflation and other economic challenges.

Additionally, growth in artificial intelligence chips may falter if AI earnings fall short or interest in AI wanes.

"The management expects that profit after tax in the second half of 2024 will be much lower than in the first half, due to the strengthening ringgit against the US dollar and the group's plan to set aside approximately RM8.8 million for staff costs," the group said.

Consequently, the group maintained a cautious and conservative outlook for 2024.

Shares in Mi Technovation closed 15 sen or 7.04% higher at RM2.28 on Friday, giving the group a market capitalisation of RM2.05 billion. Year to date, the stock has risen 24.6%