KUALA LUMPUR (Aug 26): Oppstar Bhd (KL:OPPSTAR) posted its first net profit in nearly two years, thanks to a surge of revenue at the chip design firm.

Net profit for the three months ended June 30, 2026 (1QFY2027) was RM4.09 million compared to a net loss of RM4.05 million in the same quarter a year earlier, the company said in an exchange filing. Revenue nearly doubled year-on-year to RM15.86 million from design and post-silicon validation services.

The outlook for the current financial year is expected to be “brighter” than the preceding year, thanks to demand towards artificial intelligence (AI) chips that widens its project pipeline, Oppstar said.

“At the same time, the industry-wide shortage of skilled engineering talent remains a key challenge,” the company said. “Competition for experienced design talent is intensifying, and this is expected to place upward pressure on the group’s personnel costs and keep margins tight in the near term.”

Oppstar has been in the red since 1QFY2025, as the company grappled with lower revenue from project slowdown while fixed costs, includes on engineering manpower, remained elevated.

The plan is to move progressively up the value chain, from a predominantly service-based model towards “a more integrated role in the AI ecosystem,” the company said.

“This will be pursued through high-value design engagements, including turnkey design projects, as well as selective collaborations in AI hardware development, targeting architectures such as accelerators and neural processing units,” Oppstar added.

No dividend was declared during the quarter.

Oppstar shares rose two sen or 2.86% to 72 sen at the midday break on Wednesday, valuing the company at RM466 million ahead of the results announcement.