KUALA LUMPUR (March 11): KESM Industries Bhd (KL:KESM), the world’s largest independent burn-in and test service provider, posted its third straight quarterly net loss of RM2.99 million, or loss per share of 6.95 sen, in the second quarter ended Jan 31, 2025 (2QFY2025), due to continued weak demand for automotive chips.
The loss, the group said, reflected industry-wide inventory adjustments.
The group made a net profit of RM138,000 in the previous year, with an earnings per share of 0.32 sen, the group’s bourse filing showed.
Quarterly revenue declined 17% year-on-year to RM51.39 million from RM61.77 million. The weaker top-line performance was attributed to reduced orders for burn-in and testing services, reflecting softer demand in the automotive semiconductor sector.
No dividend was declared during the quarter.
KESM reported a net loss of RM7.52 million for the first half of FY2025 (1HFY2025), a reversal from a net profit of RM1.05 million in 1HFY2024. Revenue fell 17% year-on-year to RM104.21 million from RM125.3 million.
The group said the weaker 1HFY2025 results were largely attributed to slower-than-expected demand recovery in automotive semiconductors.
Despite short-term challenges, the company remains optimistic about scaling up production to support artificial intelligence (AI) applications.
KESM executive chairman and chief executive officer Samuel Lim highlighted growing demand in power management devices and AI-driven solutions for electric vehicles, positioning the company to benefit from the expanding semiconductor industry.
He noted that global automotive semiconductor demand is expected to grow significantly, driven by the rise of electric vehicles and advancements in power management technologies.
Global semiconductor revenue is projected to hit US$705 billion (RM3.11 trillion) in 2025, growing by 12.6% year-on-year. The automotive semiconductor market is forecasted to reach US$102.15 billion by 2034, with an annual growth rate of 8.12% from 2025 to 2034.
Shares in KESM fell 11 sen or 3.5% to close at RM3.01, bringing the group a market value of RM129 million. Over the past one year, the stock has fallen 52.9%.
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