Financials

Quarterly Report For The Financial Period Ended 30 September 2018

Financials Archive

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Unaudited Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income For The Three Months Ended 30 September 2018

Unaudited Condensed Consolidated Statement Of Financial Position As At 30 September 2018

Review of Performance

The Group recorded a higher revenue at RM108.3 million in the current quarter as compared to RM83.3million registered in the corresponding quarter last year, representing an increase of 30.0%. The higher revenue recorded was mainly due to increase in sales from both the automated equipmentand automated manufacturing solution operating segment.


The Group recorded a higher revenue at RM310.0 million for the nine months ended 30 September 2018 as compared to RM185.7 million recorded in the previous corresponding period, representing an increase of 66.9%. The Group's revenue was contributed by both the automated equipment and automated manufacturing solution segments which constituted approximately 83.5% and 14.9% of the Group's total revenue during the nine months ended 30 September 2018 respectively.


The following table sets out revenue breakdown by customer' segment for the Group:

Due to higher revenue achieved during the three months ended 30 September 2018, the Group consequently recorded a higher profit before taxation of RM28.6 million in the current quarter as compared to the profit before taxation of RM9.4 million in the previous corresponding quarter, representing an increase of 203.3%.


The Group recorded a profit before taxation of RM69.2 million for the nine months ended 30 September 2018 as compared to profit before taxation of RM30.5 million for the nine months ended 30 September 2017, an increase of 126.9% after taking into account the non-recurring expenses in relation to the listing exercise of PIL. Should the effects of such non-recurring expenses be excluded, the Group would have recorded a profit before taxation of RM76.3 million, an increase of 115.5% from RM35.4 million recorded in the previous corresponding period.


Performance of the respective operating segments which includes inter-segment transactions for the current quarter as compared to the previous corresponding quarter is analysed as follows:-

  1. Automated equipment

    The automated equipment segment remains as the Group's major revenue source. The products and solutions under this segment generally consist of (i) semiconductor electronic components testing for smart sensors and ICs (integrated circuits); and (ii) end products testing for consumer electronics products and LEDs.


    This segment recorded an increase in revenue by RM15.7 millionor 21.6% to RM88.4 million for the three months ended 30 September 2018 as compared to the corresponding quarter last year and an increase in revenue by RM112.0 million or 71.6% to RM268.5 million for the nine months ended 30 September 2018 as compared to the previous corresponding period. The commendable revenue growth was mainly attributable to the continuous surge indemand for test equipment particularly the flagship test solutions in ambient and proximity sensors customised for the smart mobile device sector. Such demand was underpinned by the increasing volume and complexity of smart sensors in mobile devices resulting in the growth in demandand the revenue for this business segment.


    As a result of higher revenue achieved and changes in sales mix, this segment profit before taxation is higher by RM27.4 million or 91.6% in the current quarter under review as compared to profit before taxation of RM14.3 million in the corresponding quarterlast year and profit before taxation is higher by RM35.8 million or 105.0% for the nine months ended 30 September 2018 as compared to the previous corresponding period.


  2. Automated manufacturing solution

    The products and solutions in this segment entail customised integrated manufacturing system consisting of automated assembly and test modules, material handling equipment, robotics technology, auto inspection and manufacturing execution system (MES) for various industries including telecommunications, automotive, food and beverage and medical devices.


    This segment recorded revenue of RM21.3 million in the current quarter and RM52.7 million for the nine months ended 30 September 2018as compared to revenue of RM9.4 million in the corresponding quarter last year and RM29.4 million for the previous corresponding periodended 30 September 2017, representing an increase of approximately 126.6% and 79.3%, respectively. The increase in revenue from this segment was mainly due to higher volume of project delivery involving factory automation lines comprising the AMS (automated manufacturing solution) modules and i-ARMS (intelligent Automated Robotic Manufacturing System) solutions.


    Consequently, this segment profit before taxation is higher by RM1.6 millionin the current quarter under review and RM4.1 million for the nine months ended 30 September 2018 as compared to lossbefore taxation of RM1.6 million in the previous corresponding quarter and RM1.7 million for the previous corresponding period ended 30 September 2017, due to favorable changes in sales mix.


  3. Smart Control Solution System

    The smart control solution system segment recorded revenue of RM3.0 million in the current quarter and RM5.7 million for the nine months ended 30 September 2018 as compared to revenue of RM3.0 million and RM8.6 million in the corresponding quarter last year and previous corresponding period respectively. This segment recorded a profit before taxation of RM1.4 million in the current quarter under review and RM0.9 million for the nine months ended 30 September 2018 as compared to loss before taxation of RM0.2 million in the corresponding quarter last year and profit before taxation of RM46,000 for the previous corresponding periodended 30 September 2017.

Current Year Prospect

Generally, the Group views its performance for the remaining period of the financial year positively based on its book orders on hand. Going forward, the management remains confident in the demand for the Group's automated test equipment as well as automated manufacturing solution in view of (i) the increasing volume and complexity of smart sensors, (ii) the prevalence of 3D sensing technology, (iii) the Group’s continuous diversification and expansion into new segments particularly the automotive and medical industries, and (iv) the Group’s increased floor space with the completion of the new production plant.