KUALA LUMPUR – Frontken Corporation Bhd’s net profit rose to RM23.29 million in the fourth quarter ended December 31, 2020 (Q4 2020) from RM18.20 million in the same period the previous year.
Revenue rose to RM101.04 million from RM88.89 million, an increase of 13.7% compared to Q4 2019, mainly contributed by its subsidiaries in Taiwan, Malaysia and the Philippines.
For the financial year ended December 31, 2020, the cumulative net profit soared to RM81.97 million compared to RM69.17 million for the financial year ended December 31, 2019.
In a filing with Bursa Malaysia today, the semiconductor support services company said profit after tax (PAT) of RM25.3 million for the Q4 2020 was RM5.7 million or 28.9% higher than the corresponding quarter’s RM19.6 million.
“This was the highest PAT we had ever achieved, mainly due to improved revenue and better profit margin resulting from the continual efforts to improve efficiency across the group,” it said.
The group is also looking on advancement and deployment of new innovative technologies following the gradual rollout of 5G network globally as these developments in the electronic and technology space, coupled with strong demand for customer’s advanced nodes’ chips, would be positive for its business in years to come.
“The group would be expanding its capacity in Taiwan by setting up a new state of the art facility in anticipation of increased demand related to tools involved in manufacturing of the leading edge chips, which we are given to understand, will be commercially available in 2022,” it said.
Currently, it said Frontken has been supporting the customers during their research and development production stage for this latest node.
On the outlook, it said the group is cautiously optimistic that the overall business condition would pick up further throughout 2021, including its oil and gas division based on the strong appreciation of the Brent crude oil price thus far this year. – Bernama, February 23, 2021
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