KUALA LUMPUR (March 10): KESM Industries Bhd (KL:KESM), the world’s largest independent burn-in and test service provider, posted a net profit of RM3.59 million for its second quarter, compared with a net loss of RM2.99 million a year earlier, thanks to gains from asset disposals and lower operating expenses.
Revenue for the quarter ended Jan 31, 2026 (2QFY2026) rose 7% year-on-year to RM54.90 million from RM51.39 million primarily due to improved demand, the group said in a filing with Bursa Malaysia on Tuesday.
No dividend was declared for the quarter.
For the first half of FY2026, KESM reported a net profit of RM5.44 million, reversing from a net loss of RM7.52 million in the same period the previous year, as revenue rose 3% to RM107.95 million from RM104.21 million.
Moving forward, KESM noted that the recent tariff adjustments following a decision by the US Supreme Court related to tariff measures could introduce further volatility to global trade flows.
“[However], the AI-led market demand is expected to remain strong, particularly in AI applications and data centres. We remain committed to supporting our customers’ capacity requirements and ensuring timely fulfilment of orders,” the group said.
The group added that escalating geopolitical tensions in the Middle East, including the conflict involving Iran, have pushed global energy prices higher, potentially affecting operating costs.
KESM said its improved performance in 2QFY2026 was partly driven by a RM2.3 million gain from the disposal of property, plant and equipment as well as assets held for sale, alongside a RM800,000 net fair value gain on investment securities.
These were partly offset by the absence of a RM200,000 net foreign exchange gain recorded in the corresponding quarter last year.
KESM also reported a reduction in other expenses, which declined 14% or RM2.7 million during the quarter, thanks to lower utilities costs as well as the absence of net fair value loss on investment securities recorded previously, among others.
Shares in KESM closed 13 sen or 4.89% higher at RM2.79 on Tuesday, giving the group a market capitalisation of RM120.01 million. The stock has declined more than 6% year to date.