SAM Engineering’s 3Q net profit rises 26.84%

by **Cals** Thu 18 Feb 2016, 02:06

SAM Engineering’s 3Q net profit rises 26.84%

By Yimie Yong / theedgemarkets.com | February 17, 2016 : 11:14 PM MYT

KUALA LUMPUR (Feb 17): SAM Engineering & Equipment (M) Bhd saw its net profit rise 26.84% to RM14.65 million or 16.97 sen per share in the third quarter ended Dec 31, 2015 (3QFY16), from RM11.55 million or 13.7 sen per share a year earlier, on higher revenue in the equipment manufacturing segment.

Revenue was up 36.54% to RM155.03 million, from RM113.54 million a year ago.

In a filing with Bursa Malaysia today, Sam Engineering said the increase was mainly due to the increase in revenue from the equipment manufacturing segment of RM38.6 million, as a result of higher demand for its storage device testers.

Meanwhile, for the nine months ended Dec 31, 2015 (9MFY16), the company’s net profit surged 137.35% to RM45.69 million or 53.37 sen per share, from RM19.25 million or 23.82 sen per share.

Revenue jumped 43.59% to RM458.08 million, from RM319.03 million.

On its prospects, SAM Engineering said it expects revenue from the aerospace industry which accounts for about 53% of the group revenue, to remain stable.

Meanwhile, the semiconductor equipment business remains flat, while the capital expenditure budgets by semiconductor manufacturers are being deferred until new capacity is required.

Notwithstanding the short term uncertainty in the semiconductor equipment industry, the company anticipates the longer term future demand for the industry to still be intact and continue to grow, driven by increasing global demand for mobile computing and internet of things.

“On the other hand, the outlook for the storage device testing industry remains positive until the end of the current financial year,” it added.

Shares of SAM Engineering closed 25 sen or 3.78% higher, for a market capitalisation of RM591.31 million. The counter was one of the top gainers on bourse today.