KUALA LUMPUR (Feb 6): Precision engineering services provider Ambest Group Bhd (KL:AMBEST) said it is monitoring the impact of a stronger ringgit on its US dollar-denominated revenue, which accounts for about 30% to 40% of total sales.

Speaking to reporters after the company's listing, chief financial officer Chong Chun Chieh noted that the group maintains close coordination with customers to manage foreign exchange and raw material fluctuations.

“Whenever there are any fluctuations in dollar or maybe in raw materials, we always have room for discussion [with customers],” said Chong.

The ringgit has been on the rise, with the currency trading 3.94 against the US dollar at end-January, prompting a closer market watch on exporters and companies with significant foreign currency exposure.

For the financial year ended Dec 31, 2024 (FY2024), Ambest recorded a 3% increase in net profit to RM7 million, in line with the same pace of growth in revenue to RM47.26 million. Sales denominated in US dollars accounted for 38.31% of the group’s revenue in FY2024, according to its prospectus.

Managing director Tan Beng Beng flagged encouraging demand with more order confirmations coming in pre-listing. He highlighted the growing role of artificial intelligence (AI) across sectors playing a part in its growth.

“We can say that AI gets involved with all sectors nowadays, so I strongly believe the demand will be non-stop in the future,” said Tan.

As part of its IPO, the group is currently expanding its Facility 42A in Bayan Lepas, Penang, which is in the commissioning stage and used for warehousing and is expected to be operational by the end of 2026. Tan said the facility will support sub-module assembly and integration.

Looking beyond semiconductors for the next five years, Chong said the group is pursuing ISO 13485 certification for the medical industry and ISO 9001 for aerospace as part of a longer-term diversification strategy.

Currently, Tan said the group will focus on its core semiconductor business while producing more complex and precision to add to its portfolio.

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