KUALA LUMPUR (Feb 24): Semiconductor services firm Frontken Corporation Bhd (KL:FRONTKN) reported a record net profit of RM154.2 million for the financial year ended Dec 31, 2025 (FY2025), driven mainly by sales improvements in its Taiwan operations.

The Taiwan operations account for over 70% of annual revenue. 

In its filing with Bursa Malaysia, the company said it plans to expand capacity in Taiwan to meet growing demand from AI and high-performance computing (HPC) clients. No further details were provided.

For the fourth quarter (4QFY2025), net profit rose 15.1% to RM43.8 million, supported by a 20% increase in Taiwan revenue, while quarterly revenue grew 5% to RM156.9 million. Full-year revenue increased 6.8% to RM607 million from RM569.2 million.

Frontken serves Taiwan Semiconductor Manufacturing Co, Asia’s largest tech company, which produces chips for clients like Nvidia amid the AI boom. 

The company in its filing with the bourse said it is optimistic about the semiconductor sector’s long-term prospects, driven by AI, next-generation computing, and data centre investments. It is also exploring new markets while monitoring macroeconomic risks, and expects its oil and gas segment to deliver steady results in 2026.

The group confirmed its share grant plan is fully executed, with 1.96 million shares transferred and none remaining, in a separate filing.

Frontken trades at a price-earnings ratio of 43.3 times, lower than its historical average, and a price to net asset value of 8.0 times, higher than most peers but below recent-year averages. 

Its shares slipped 0.26% to RM3.88 at Tuesday's noon break, giving it a market value of RM6.45 billion.