KUALA LUMPUR (Aug 23): Semiconductor company D&O Green Technologies Bhd’s (KL:D&O) net profit for the second quarter ended June 30, 2024 (2QFY2024) surged nearly 11 times to RM7.76 million from RM716,000 a year earlier, due to higher revenue across its main business segments.

Earnings per share rose to 0.63 sen for 2QFY2024, compared to 0.06 sen for 2QFY2023, according to the group’s bourse filing.

Revenue for the quarter increased by 20.76% to RM265.63 million from RM219.97 million in 2QFY2023, primarily due to higher contribution from the automotive segment. This growth was fuelled by new design wins, particularly in “Smart Lights Emitting-Diode (LED)” ambient lighting, rear combination lamps and headlamp applications, it noted.

No dividend was declared for the quarter under review.

For the first six months ended June 30, 2024 (1HFY2024), D&O’s net profit surged more than 12 times to RM19.04 million from RM1.58 million a year ago, while revenue increased by 24.08% to RM539.37 million from RM434.69 million.

Looking ahead, D&O does not see slowing growth in electric vehicle (EV) sales significantly impacting sales of its automotive LEDs.

The company said global demand for automotive LEDs is driven by increasing LED density in new car designs — whether EVs, PHEVs, or traditional vehicles — driven by the pursuit of enhanced safety features, aesthetic appeal and a better driving experience.

“D&O is strategically well-positioned to capitalise on this trend, given its extensive product portfolio and available capacity. Barring any unforeseen circumstances, the board is confident in achieving positive revenue growth in 2024,” the company said.

Shares in D&O Green Technologies fell 10 sen or 3.06% to RM3.17 on Friday, valuing the company at RM3.93 billion.