KUALA LUMPUR (Aug 15): Mi Technovation Bhd’s (KL:MI) net profit declined for a second consecutive quarter, falling 43.5% to RM15.57 million for the second quarter ended June 30, 2025 (2QFY2025), weighed down by foreign exchange losses of RM16.8 million.
This compares with a net profit of RM27.58 million in the same quarter a year earlier and RM17.59 million in 1QFY2025, marking an 11.5% quarter-on-quarter (q-o-q) contraction, according to its bourse filing on Friday.
Earnings per share slid to 1.75 sen compared to 3.08 sen in 2QFY2024.
Revenue, however, rose 21.2% to RM154.12 million from RM127.18 million a year earlier, and jumped 28.9% from RM119.55 million in 1QFY2025, which the company attributed to accelerated order pull-ins and strong demand in advanced packaging across Southeast Asia, particularly due to near-term tariff concerns.
Segmentally, its semiconductor equipment business unit (SEBU) remained the largest contributor, with revenue up 22.9% year-on-year to RM88.4 million, or 57.4% of the group’s total.
The semiconductor material business unit (SMBU) posted a 25.2% increase in revenue to RM65.6 million, while its semiconductor solutions business unit (SSBU) generated RM93,000 compared to RM2.8 million a year ago.
"Excluding adverse foreign currency fluctuations, the group recorded an improvement in profit before tax (PBT) on continued revenue strength, despite the RM5.5 million loss incurred by SSBU due to higher R&D staff costs and related development expenses," the semiconductor solutions provider said.
For the cumulative six-month period (1HFY2025), net profit fell 39% to RM33.16 million from RM54.37 million the same period last year, despite revenue growing 16.8% to RM273.67 million from RM234.31 million previously.
Cumulative earnings per share came in at 3.72 sen, down from 6.08 sen a year ago.
The group declared a first interim dividend of one sen per share for FY2025, with the ex-date and payment date set for Aug 29 and Sept 17 respectively.
Mi Technovation manufactures semiconductor equipment and materials including die sorters and solder balls used in chip packaging and testing, with a growing presence in automotive and renewable energy applications.
Looking ahead, the group said it remains cautiously optimistic amid ongoing geopolitical tensions and macroeconomic uncertainties. It expects continued growth in the high-performance computing (HPC) and memory segment, fuelled by the global acceleration of AI applications requiring high-performance GPUs and high-bandwidth memory technologies.
"The group remains strategically focused on innovation and supply chain diversification, particularly within the semiconductor advanced packaging sector, to mitigate risks while capitalising on high growth markets," Mi Technovation said.
Shares of Mi Technovation closed two sen or 0.94% lower at RM2.10 on Friday, giving the group a market capitalisation of RM1.89 billion. The stock is down 7.9% year to date.