SKP Resources 2Q net profit falls 11.4%

KUALA LUMPUR (Nov 29): SKP Resources Bhd saw its net profit fall 11.4% year-on-year to RM24.91 million or 1.99 sen per share in its second quarter ended Sept 30, 2019, from RM28.1 million or 2.25 sen per share previously.

This was despite a 2% rise in revenue to RM486.86 million from RM477.23 million, the electronics manufacturing services provider’s stock exchange filing today showed.

This brings SKP Resources’ first-half net profit to RM43.4 million, down 19.5% from RM53.94 million in the preceding year’s corresponding period. Cumulative revenue came down to RM849.4 million from RM907.75 million.

SKP Resources said its earnings were lower mainly due to less revenue recorded from existing key customers during the period as well as different products mix.

Despite so, the group said business sentiment of most of the group’s customers remained positive.

It added that it is strategically well positioned in the electronics manufacturing services industry and continues to pursue opportunities to grow its market share from existing customers.

“Going forward, using the group's customer guidance, we anticipate higher capacity utilisation and improved production throughput. Barring any unforeseen circumstances, we expect revenue contribution from customers’ orders to increase in the coming quarters.

“Prospects remain good and the board is optimistic and expects to achieve profit growth for the financial year ending March 31, 2020,” the group said.

Shares in SKP Resources closed unchanged today at RM1.23 for a market capitalisation of RM1.54 billion.