KUALA LUMPUR (Feb 14): Engineering precision parts manufacturer CPE Technology Bhd (KL:CPETECH) said on Friday it remains optimistic on demand growth in 2025 after its second quarter net profit grew seven-fold.

According to a bourse filing on Friday, the company’s net profit for the three months ended Dec 31, 2024 (2QFY2025) surged to RM10.47 million from RM1.49 million in the corresponding quarter, driven by higher demand from the semiconductor industry, reflecting stronger order volumes and improved capacity utilisation.

CPE Tech declared a first interim single-tier dividend of one sen per ordinary share for the period ended Dec 31, 2024.

Revenue for the quarter increased by 52% to RM33.20 million, from RM21.78 million in the corresponding quarter.  

Meanwhile, for the first six months of the financial year (1HFY2025), the company reported a 214% rise in net profit to RM12.75 million as well as registering a higher revenue of RM62.49 million compared with RM44.48 million in the corresponding period.  

The increase in revenue was driven by the semiconductor industry, which accounted for RM23.15 million, or 66.22% of the total revenue, it said.

Trailing this was the life sciences and medical devices sector, contributing RM4.33 million, or 13.89%. The sports equipment industry followed with RM3.51 million, or 11.37%, while the aerospace industry generated RM0.72 million, or 3.76%. The sensor equipment sector contributed RM0.46 million, or 1.92%, and other industries collectively added RM1.03 million, or 2.84%.

“While the semiconductor market remains conservative in its recovery, there are positive signs of growth, particularly in the artifical intelligence and high performance computing segments.

“Our company, with its strategic positioning in high-barrier markets and strong customer relationships, is well-positioned to capitalise on the anticipated rebound in the semiconductor sector,” it said in a bourse filing.

“We remain optimistic about achieving further growth in 2025, particularly as inventory levels normalise and demand accelerates,” it added.

CPE Tech was listed on Dec 7, 2023 and is involved in the manufacturing of precision-machine parts and components, besides the provision of computer numerical control machining services.  

CPE Tech shares closed up two sen or 2.3% at 90.5 sen, valuing the company at RM608 million.